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Key: (1) language to be deleted (2) new language

CHAPTER 189--H.F.No. 2749

An act

relating to state government; providing supplemental appropriations and policy for higher education, agriculture, broadband development, state agencies, the courts, public safety, corrections, environment, natural resources, state government, veterans, jobs, economic development, labor and industry, commerce, housing finance, health and human services, early childhood education, voluntary prekindergarten, kindergarten through grade 12 education, and community and adult education; providing for the James Metzen Mighty Ducks Ice Center Development Act; providing policy initiatives for state government programs; making policy, technical, and conforming changes to various provisions, including provisions governing broadband development, state broadband goals, postsecondary student aid programs, agriculture, driver's licenses, identification cards, predatory offender registration, prostitution, game and fish, natural resources, state lands, watercraft, recreational vehicles, energy, utilities, state agencies, the Board of Barbers, veterans, economic development, labor and industry, housing, the Public Employment Relations Board, Explore Minnesota Tourism, commerce, children and family services, mental and chemical health services, direct care and treatment, continuing care, health care programs, Department of Health programs, and health-related licensing; making forecast adjustments; making adjustments to certain appropriations; specifying requirements for construction of highways on tribal lands; creating a surrogacy commission; modifying state procurement contracts; establishing certain programs and incentives; providing an income tax subtraction for military retirement pay; providing an income tax credit for parents of stillborn children; modifying the sales and use tax rate for retail sales of modular homes; increasing maximum sentence for felony assault motivated by bias; permitting the purchase and possession of alcohol by sensory testing firms; authorizing the issuance of certain liquor licenses; authorizing transfers; creating accounts; creating task forces; requiring reports; authorizing rulemaking; providing criminal penalties;

amending Minnesota Statutes 2014, sections 3.3005, subdivisions 3, 3b, 4, 5, 6, by adding subdivisions; 13.3805, by adding a subdivision; 16A.103, by adding a subdivision; 16C.10, subdivision 6; 16C.16, subdivisions 6, 7, 11, by adding a subdivision; 16E.0466; 16E.21, subdivision 2, by adding subdivisions; 17.117, subdivisions 4, 11a; 17.4982, subdivision 18a; 18B.26, subdivision 3; 41A.12, subdivision 2; 61A.24, by adding a subdivision; 61A.25, by adding a subdivision; 62D.04, subdivision 1; 62D.08, subdivision 3; 62J.495, subdivision 4; 62J.496, subdivision 1; 62V.05, by adding a subdivision; 84.027, subdivision 13; 84.091, subdivision 2; 84.798, subdivision 2; 84.8035; 84D.01, subdivision 2; 84D.05, subdivision 1; 84D.09, subdivision 2; 84D.10, subdivision 4; 84D.108, by adding a subdivision; 84D.13, subdivision 4; 85.015, subdivision 13; 86B.005, by adding subdivisions; 88.01, by adding a subdivision; 88.22, subdivision 1; 89.0385; 93.0015, subdivision 3; 93.2236; 94.3495, subdivisions 2, 3, 7; 97A.075, subdivision 7; 97A.405, subdivision 2; 97A.465, by adding a subdivision; 115C.09, subdivisions 1, 3; 115C.13; 116J.395, subdivisions 4, 5, by adding subdivisions; 116J.423; 116J.424; 116J.431, subdivisions 1, 2, 4, 6; 116J.68; 116J.8737, subdivisions 2, 3, 5, 12; 116J.8747, subdivisions 1, 2; 116L.99; 116M.14, subdivisions 2, 4, by adding subdivisions; 116M.15, subdivision 1, by adding a subdivision; 116M.17, subdivisions 2, 4; 116M.18; 120A.42; 120B.02, by adding a subdivision; 120B.021, subdivisions 1, 3; 120B.11, subdivisions 1a, 2, 3, 4, 5; 120B.12, subdivision 2; 120B.15; 120B.232; 120B.30, subdivision 2, by adding a subdivision; 120B.31, subdivision 5, by adding subdivisions; 120B.35; 120B.36, as amended; 121A.53; 121A.61, subdivision 3; 121A.64; 122A.09, as amended; 122A.16; 122A.18, as amended; 122A.21, as amended; 122A.245, as amended; 122A.31, subdivision 3; 122A.4144; 122A.416; 122A.42; 122A.63, subdivision 1; 122A.72, subdivision 5; 123A.24, subdivision 2; 123B.045, by adding a subdivision; 123B.52, subdivision 1; 123B.53, subdivision 5; 123B.571, subdivision 2; 123B.60, subdivision 1; 123B.71, subdivision 8; 123B.79, subdivisions 5, 8, 9; 124D.03, subdivision 5a; 124D.111, by adding a subdivision; 124D.1158, subdivisions 3, 4; 124D.135, subdivision 6, by adding subdivisions; 124D.15, subdivisions 3a, 15; 124D.52, subdivisions 1, 2; 124D.55; 124D.59, by adding a subdivision; 124D.68, subdivision 2; 124D.861, as amended; 125A.091, subdivision 11; 125A.0942, subdivision 4; 125A.56, subdivision 1; 126C.05, subdivision 3; 126C.10, subdivisions 2d, 24; 126C.40, subdivision 5; 126C.63, subdivision 7; 127A.095; 127A.353, subdivision 4; 127A.45, subdivision 6a; 127A.51; 129C.10, subdivision 1; 136A.101, subdivisions 5a, 10; 144.05, by adding a subdivision; 144A.073, subdivisions 13, 14, by adding a subdivision; 144A.611, subdivisions 1, 2, by adding a subdivision; 144A.75, subdivisions 5, 6, 8, by adding a subdivision; 145.4716, subdivision 2, by adding a subdivision; 149A.50, subdivision 2; 154.001, subdivision 2; 154.002; 154.01; 154.02; 154.04; 154.05; 154.065, subdivisions 2, 4; 154.07; 154.08; 154.09; 154.10, subdivision 2; 154.11, subdivision 1; 154.14; 154.15; 154.161, subdivision 7; 154.162; 154.19; 154.21; 154.24; 154.25; 161.368; 171.07, subdivisions 6, 7, 15, by adding a subdivision; 197.455, subdivision 1; 214.075, subdivision 3; 216B.16, subdivision 12; 216B.1691, subdivision 10; 216B.241, subdivision 1c; 216B.243, subdivision 8; 216C.20, subdivision 3; 216E.03, subdivision 5; 216H.01, by adding a subdivision; 216H.03, subdivision 1; 237.012; 243.166, subdivision 1b; 245.92; 245.94; 245.95, subdivision 1; 245.97, subdivision 5; 245.99, subdivision 2; 245A.11, subdivision 2a, as amended; 246.50, subdivision 7; 246.54, as amended; 246B.01, subdivision 1b; 246B.035; 254B.01, subdivision 4a; 254B.03, subdivision 4; 254B.04, subdivision 2a; 254B.06, subdivision 2, by adding a subdivision; 256.01, by adding a subdivision; 256B.059, subdivisions 1, 2, 3, by adding a subdivision; 256B.06, subdivision 4; 256B.0622, by adding a subdivision; 256B.0625, subdivisions 30, 34, by adding a subdivision; 256B.15, subdivisions 1, 1a, 2; 256D.051, subdivision 6b; 256L.01, subdivision 1a; 256L.04, subdivisions 1a, 2; 256L.07, subdivision 1; 256L.11, subdivision 7; 256N.26, subdivision 3; 260C.451, by adding a subdivision; 268.035, subdivisions 12, 20, 23a, 29, by adding subdivisions; 268.051, subdivision 5; 268.085, subdivisions 4, 5; 268.0865, subdivisions 3, 4; 268.095, subdivisions 1, 2, 5; 268.101, subdivision 2; 268.18; 268.182, subdivision 2; 290.01, subdivision 19b; 297A.62, subdivision 3; 299A.41, subdivisions 3, 4; 326B.439; 326B.49, subdivision 1; 327.14, subdivision 8; 327C.03, subdivision 6; 327C.095, subdivisions 12, 13; 373.48, subdivision 3; 462A.204, subdivisions 1, 3; 484.90, subdivision 6; 518.175, subdivision 5; 518A.34; 518A.35, subdivision 1; 518A.36; 609.3241; 626.556, subdivision 3e; 626.558, subdivisions 1, 2, by adding a subdivision; Minnesota Statutes 2015 Supplement, sections 16A.152, subdivision 2; 16A.724, subdivision 2; 16C.073, subdivision 2; 16C.16, subdivision 6a; 41A.14; 41A.15, subdivision 10, by adding subdivisions; 41A.16, subdivision 1; 41A.17, subdivisions 1, 2; 41A.18, subdivision 1; 84.027, subdivision 13a; 84D.11, subdivision 1; 84D.13, subdivision 5; 116D.04, subdivision 2a; 116J.394; 120A.41; 120B.021, subdivision 4; 120B.125; 120B.30, subdivision 1; 120B.301; 120B.31, subdivision 4; 122A.23; 122A.40, subdivision 8; 122A.41, subdivision 5; 122A.414, subdivisions 1, 2, 2b, 3; 122A.415, subdivision 4; 122A.60, subdivision 4; 123B.53, subdivision 1; 123B.595, subdivisions 1, 4, 7, 8, 9, 10, 11, by adding a subdivision; 124D.231, subdivision 2; 124D.59, subdivision 2; 124D.73, subdivision 4; 124E.01; 124E.02; 124E.03; 124E.05; 124E.06; 124E.07; 124E.08; 124E.10; 124E.12; 124E.13; 124E.15; 124E.16; 124E.17; 124E.22; 124E.24; 124E.25; 124E.26; 125A.08; 125A.083; 125A.0942, subdivision 3; 125A.11, subdivision 1; 125A.21, subdivision 3; 125A.63, subdivision 4; 125A.76, subdivision 2c; 125A.79, subdivision 1; 126C.05, subdivision 1; 126C.10, subdivision 13a; 126C.48, subdivision 8; 127A.05, subdivision 6; 127A.47, subdivision 7; 136A.121, subdivision 7a; 136A.125, subdivisions 2, 4; 136A.1791, subdivisions 4, 5, 6; 136A.246, by adding subdivisions; 136A.87; 136F.302, subdivision 1; 144.4961, subdivisions 3, 4, 5, 6, 8, by adding subdivisions; 144A.75, subdivision 13; 149A.92, subdivision 1; 154.003; 154.11, subdivision 3; 154.161, subdivision 4; 197.46; 245.735, subdivisions 3, 4; 254B.05, subdivision 5; 256B.059, subdivision 5; 256B.0625, subdivision 17a; 256B.431, subdivision 36; 256B.76, subdivisions 2, 4; 256B.766; 256L.01, subdivision 5; 256L.04, subdivision 7b; 256L.05, subdivision 3a; 256L.06, subdivision 3; 256L.15, subdivision 1; 256P.06, subdivision 3; 260C.203; 260C.212, subdivisions 1, 14; 260C.215, subdivision 4; 260C.451, subdivision 6; 260C.521, subdivision 1; 268.07, subdivision 3b; 268.085, subdivision 2; 326B.13, subdivision 8; 326B.988; 518A.26, subdivision 14; 518A.39, subdivision 2; 583.215; 609.324, subdivision 1; 626.556, subdivision 2; Laws 2001, chapter 130, section 3; Laws 2011, First Special Session chapter 11, article 4, section 8; Laws 2014, chapter 198, article 2, section 2; Laws 2014, chapter 211, section 13; Laws 2014, chapter 312, article 2, sections 14; 15; article 12, section 6, subdivision 5, as amended; Laws 2015, chapter 65, article 1, section 18; Laws 2015, chapter 69, article 1, section 3, subdivision 28; article 3, sections 20, subdivision 15; 24, subdivision 1; Laws 2015, chapter 71, article 8, section 24; article 14, section 4, subdivision 3; Laws 2015, First Special Session chapter 1, article 1, sections 2, subdivision 3; 4; 6; article 6, section 16; Laws 2015, First Special Session chapter 3, article 1, sections 24; 27, subdivisions 2, 4, 5, 6, 7, 9; article 2, section 70, subdivisions 2, 3, 4, 5, 6, 7, 11, 12, 15, 19, 21, 24, 26; article 4, sections 4; 9, subdivision 2; article 5, section 30, subdivisions 2, 3, 5; article 6, section 13, subdivisions 2, 3, 6, 7; article 7, section 7, subdivisions 2, 3, 4; article 9, section 8, subdivisions 5, 6, 7, 9; article 10, section 3, subdivisions 2, 6, 7; article 11, section 3, subdivisions 2, 3; article 12, section 4, subdivision 2; Laws 2015, First Special Session chapter 4, article 1, sections 2, subdivisions 2, 4; 5; article 3, section 3, subdivisions 2, 5; article 4, section 131; proposing coding for new law in Minnesota Statutes, chapters 17; 41A; 62D; 84D; 86B; 116J; 116L; 119A; 120B; 121A; 123B; 124D; 136A; 136F; 144; 145; 216B; 240A; 254B; 260C; 260D; 290; 325E; 462A; 518A; 609; proposing coding for new law as Minnesota Statutes, chapters 147F; 153B; repealing Minnesota Statutes 2014, sections 116P.13; 122A.413, subdivision 3; 122A.43, subdivision 6; 123B.60, subdivision 2; 123B.79, subdivisions 2, 6; 149A.92, subdivision 11; 154.03; 154.06; 154.11, subdivision 2; 154.12; 216B.1612; 216C.39; 256B.059, subdivision 1a; 256L.04, subdivisions 2a, 8; 256L.22; 256L.24; 256L.26; 256L.28; Minnesota Statutes 2015 Supplement, section 122A.413, subdivisions 1, 2; Special Laws 1891, chapter 57, chapter XII, section 5; Laws 2015, First Special Session chapter 4, article 2, section 81.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

HIGHER EDUCATION

Section 1.

new text begin APPROPRIATIONS.new text end

new text begin The sums shown in the columns marked "Appropriations" are added to the appropriations in Laws 2015, chapter 69, article 1, unless otherwise specified, to the agencies and for the purposes specified in this article. The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2016" and "2017" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal year 2017. "The biennium" is fiscal years 2016 and 2017. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2016 new text end new text begin 2017 new text end

Sec. 2.

new text begin MINNESOTA OFFICE OF HIGHER EDUCATION new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriations new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 3,210,000 new text end

new text begin The amounts that may be spent for each purpose are specified in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Equity in Postsecondary Education Grants new text end

new text begin -0- new text end new text begin 500,000 new text end

new text begin For equity in postsecondary attainment grants under section 31. This appropriation is available until June 30, 2020. Of this appropriation, $25,000 may be used for administration expenses to administer the grant program. This is a onetime appropriation. new text end

new text begin Subd. 3. new text end

new text begin State Grant new text end

new text begin -0- new text end new text begin 2,000,000 new text end

new text begin For the state grant program under Minnesota Statutes, section 136A.121. This is a onetime appropriation. new text end

new text begin Subd. 4. new text end

new text begin Addiction Medicine Graduate Fellowship Program new text end

new text begin -0- new text end new text begin 210,000 new text end

new text begin For establishing a grant program used to support up to four physicians who are enrolled each year in an addiction medicine fellowship program. A grant recipient must be enrolled in a program that trains fellows in diagnostic interviewing, motivational interviewing, addiction counseling, recognition and care of common acute withdrawal syndromes and complications, pharmacotherapies of addictive disorders, epidemiology and pathophysiology of addiction, addictive disorders in special populations, secondary interventions, use of screening and diagnostic instruments, inpatient care, and working within a multidisciplinary team, and prepares doctors to practice addiction medicine in rural and underserved areas of the state. The base for this program is $210,000 in fiscal year 2018 and $0 in fiscal year 2019. new text end

new text begin Subd. 5. new text end

new text begin Student and Employer Connection Information System new text end

new text begin -0- new text end new text begin 500,000 new text end

new text begin For a grant to the Saint Paul Foundation for the creation of a web-based job and intern-seeking software tool that blind matches the needs of employers located in Minnesota with the individual profiles of high school seniors and postsecondary students attending Minnesota high schools and postsecondary institutions. No more than three percent of this appropriation may be used for administrative expenses of the foundation. The foundation must report by January 15, 2017, on activities under this subdivision to the chairs and ranking minority members of the legislative committees with jurisdiction over higher education finance. The base for this appropriation is $405,000 in fiscal year 2018. new text end

Sec. 3.

new text begin BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriations new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 790,000 new text end

new text begin The amounts that may be spent for each purpose are specified in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Operating Support and Protecting Affordability new text end

new text begin -0- new text end new text begin 570,000 new text end

new text begin Subd. 3. new text end

new text begin MnSCU Open Textbooks new text end

new text begin -0- new text end new text begin 100,000 new text end

new text begin (a) For programs on system campuses that promote adoption of open textbooks. Programs must focus on the review, creation, and promotion of new or existing open textbooks and on saving money for students while meeting the academic needs of faculty. This is a onetime appropriation. new text end

new text begin (b) By January 15, 2017, the board shall report to the chairs and ranking minority members of the legislative committees with jurisdiction over higher education regarding the progress of the pilot programs. The report shall include a summary of each pilot program and the total savings expected for students as a result of the programs. new text end

new text begin Subd. 4. new text end

new text begin MnSCU Open Textbook Library new text end

new text begin -0- new text end new text begin 100,000 new text end

new text begin To expand and promote the open textbook library to faculty across the state. This is a onetime appropriation. new text end

new text begin Subd. 5. new text end

new text begin Cook County Higher Education Board new text end

new text begin -0- new text end new text begin 20,000 new text end

new text begin For transfer to the Cook County Higher Education Board to provide educational programming and academic support services to remote regions in northeastern Minnesota. This appropriation is in addition to other funds previously appropriated for transfer to the board. new text end

Sec. 4.

new text begin BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 900,000 new text end

new text begin The amounts that may be spent for each purpose are specified in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Health Training Restoration new text end

new text begin 800,000 new text end

new text begin This appropriation must be used to support all of the following: new text end

new text begin (1) faculty physicians who teach at eight residency program sites, including medical resident and student training programs in the Department of Family Medicine; new text end

new text begin (2) the Mobile Dental Clinic; and new text end

new text begin (3) expansion of geriatric education and family programs. new text end

new text begin Subd. 3. new text end

new text begin Rochester Campus, Collegiate Recovery Program new text end

new text begin -0- new text end new text begin 100,000 new text end

new text begin (a) To design and implement a collegiate recovery program at its Rochester campus. This is a onetime appropriation and is available until June 30, 2019. new text end

new text begin (b) The purpose of the collegiate recovery program is to provide structured support for students in recovery from alcohol, chemical, or other addictive behaviors. Program activities may include, but are not limited to, specialized professional support through academic, career, and financial advising; establishment of on-campus or residential peer support communities; and opportunities for personal growth through leadership development and other community engagement activities. new text end

new text begin (c) No later than January 15, 2020, the Board of Regents must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over higher education finance and policy on campus recovery program outcomes. Based on available data, the report must describe, in summary form, the number of students participating in the program and the success rate of participants, including retention and graduation rates, and long-term recovery and relapse rates. new text end

Sec. 5.

new text begin OFFICE OF OMBUDSMAN FOR MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 100,000 new text end

new text begin For the duties of the office related to clinical drug trials at the Department of Psychiatry at the University of Minnesota. new text end

Sec. 6.

new text begin MNSCU TWO-YEAR COLLEGE PROGRAM; ADMINISTRATIVE COSTS. new text end

new text begin The appropriation made by Laws 2015, chapter 69, article 1, section 3, subdivision 18, paragraph (c), for fiscal year 2017 for information technology and administrative costs is available on the effective date of this section and until June 30, 2017. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 7.

new text begin [136A.0412] ACCEPTANCE OF PRIVATE FUNDS; APPROPRIATION. new text end

new text begin The commissioner may accept donations, grants, bequests, and other gifts of money to carry out the purposes of section 136A.01. Donations, nonfederal grants, bequests, or other gifts of money accepted by the commissioner must be deposited in an account in the special revenue fund and is appropriated to the commissioner for the purpose for which it was given. new text end

Sec. 8.

Minnesota Statutes 2014, section 136A.101, subdivision 5a, is amended to read:

Subd. 5a.

Assigned family responsibility.

"Assigned family responsibility" means the amount of a family's contribution to a student's cost of attendance, as determined by a federal need analysis. For dependent students, the assigned family responsibility is deleted text begin 96deleted text end new text begin 94new text end percent of the parental contribution. For independent students with dependents other than a spouse, the assigned family responsibility is 86 percent of the student contribution. For independent students without dependents other than a spouse, the assigned family responsibility is 50 percent of the student contribution.

Sec. 9.

Minnesota Statutes 2014, section 136A.101, subdivision 10, is amended to read:

Subd. 10.

Satisfactory academic progress.

"Satisfactory academic progress" means satisfactory academic progress as defined under Code of Federal Regulations, title 34, sections 668.16(e), 668.32(f), and 668.34new text begin , except that a student with an intellectual disability as defined in Code of Federal Regulations, title 34, section 668.231, enrolled in an approved comprehensive transition and postsecondary program under that section is subject to the institution's published satisfactory academic process standards for that program as approved by the Office of Higher Educationnew text end .

Sec. 10.

Minnesota Statutes 2015 Supplement, section 136A.121, subdivision 7a, is amended to read:

Subd. 7a.

Surplus appropriation.

If the amount appropriated is determined by the office to be more than sufficient to fund projected grant demand in the second year of the biennium, the office may increase the living and miscellaneous expense allowance deleted text begin or the deleted text end deleted text begin tuition and fee maximumsdeleted text end in the second year of the biennium by up to an amount that retains sufficient appropriations to fund the projected grant demand. The adjustment may be made one or more times. In making the determination that there are more than sufficient funds, the office shall balance the need for sufficient resources to meet the projected demand for grants with the goal of fully allocating the appropriation for state grants. An increase in the living and miscellaneous expense allowance under this subdivision does not carry forward into a subsequent biennium.

Sec. 11.

Minnesota Statutes 2015 Supplement, section 136A.125, subdivision 2, is amended to read:

Subd. 2.

Eligible students.

(a) An applicant is eligible for a child care grant if the applicant:

(1) is a resident of the state of Minnesota or the applicant's spouse is a resident of the state of Minnesota;

(2) has a child 12 years of age or younger, or 14 years of age or younger who is disabled as defined in section 125A.02, and who is receiving or will receive care on a regular basis from a licensed or legal, nonlicensed caregiver;

(3) is income eligible as determined by the office's policies and rules, but is not a recipient of assistance from the Minnesota family investment program;

(4) new text begin either new text end has not earned a baccalaureate degree and has been enrolled full time less than eight semesters or the equivalentnew text begin , or has earned a baccalaureate degree and has been enrolled full time less than eight semesters or the equivalent in a graduate or professional degree programnew text end ;

(5) is pursuing a nonsectarian program or course of study that applies to an undergraduatenew text begin , graduate, or professionalnew text end degree, diploma, or certificate;

(6) is enrolled new text begin innew text end at least deleted text begin half timedeleted text end new text begin six credits in an undergraduate program or one credit in a graduate or professional programnew text end in an eligible institution; and

(7) is in good academic standing and making satisfactory academic progress.

(b) A student who withdraws from enrollment for active military service after December 31, 2002, because the student was ordered to active military service as defined in section 190.05, subdivision 5b or 5c, or for a major illness, while under the care of a medical professional, that substantially limits the student's ability to complete the term is entitled to an additional semester or the equivalent of grant eligibility and will be considered to be in continuing enrollment status upon return.

Sec. 12.

Minnesota Statutes 2015 Supplement, section 136A.125, subdivision 4, is amended to read:

Subd. 4.

Amount and length of grants.

(a) The amount of a child care grant must be based on:

(1) the income of the applicant and the applicant's spouse;

(2) the number in the applicant's family, as defined by the office; and

(3) the number of eligible children in the applicant's family.

(b) The maximum award to the applicant shall be $2,800 for each eligible child per academic year, except that the campus financial aid officer may apply to the office for approval to increase grants by up to ten percent to compensate for higher market charges for infant care in a community. The office shall develop policies to determine community market costs and review institutional requests for compensatory grant increases to ensure need and equal treatment. The office shall prepare a chart to show the amount of a grant that will be awarded per child based on the factors in this subdivision. The chart shall include a range of income and family size.

(c) Applicants with family incomes at or below a percentage of the federal poverty level, as determined by the commissioner, will qualify for the maximum award. The commissioner shall attempt to set the percentage at a level estimated to fully expend the available appropriation for child care grants. Applicants with family incomes exceeding that threshold will receive the maximum award minus ten percent of their income exceeding that threshold. If the result is less than zero, the grant is zero.

(d) The academic year award amount must be disbursed by academic term using the following formula:

(1) the academic year amount described in paragraph (b);

(2) divided by the number of terms in the academic year;

(3) divided by 15new text begin for undergraduate students and six for graduate and professional studentsnew text end ; and

(4) multiplied by the number of credits for which the student is enrolled that academic term, up to 15 creditsnew text begin for undergraduate students and six for graduate and professional studentsnew text end .

(e) Payments shall be made each academic term to the student or to the child care provider, as determined by the institution. Institutions may make payments more than once within the academic term.

Sec. 13.

Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 4, is amended to read:

Subd. 4.

Application for loan forgiveness.

Each applicant for loan forgiveness, according to rules adopted by the commissioner, shall:

(1) apply for teacher shortage loan forgiveness and promptly submit any additional information required by the commissioner;new text begin andnew text end

deleted text begin (2) annually reapply for up to five consecutive school years and submit information the commissioner requires to determine the applicant's continued eligibility for loan forgiveness; and deleted text end

deleted text begin (3)deleted text end new text begin (2)new text end submit to the commissioner a completed affidavit, prescribed by the commissioner, affirming the teacher is teaching innew text begin : (i)new text end a licensure field deleted text begin and indeleted text end new text begin identified by the commissioner as experiencing a teacher shortage; or (ii)new text end an economic development region identified by the commissioner as experiencing a teacher shortage.

Sec. 14.

Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 5, is amended to read:

Subd. 5.

Amount of loan forgiveness.

(a) To the extent funding is available, the annual amount of teacher shortage loan forgiveness for an approved applicant shall not exceed $1,000 or the cumulative balance of the applicant's qualified educational loans, including principal and interest, whichever amount is less.

(b) Recipients must secure their own qualified educational loans. Teachers who graduate from an approved teacher preparation program or teachers who add a licensure field, consistent with the teacher shortage requirements of this section, are eligible to apply for the loan forgiveness program.

new text begin (c) No teacher shall receive more than five annual awards. new text end

Sec. 15.

Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 6, is amended to read:

Subd. 6.

Disbursement.

(a) The commissioner must make annual disbursements directly to the participant of the amount for which a participant is eligible, for each year that a participant is eligible.

(b) Within 60 days of deleted text begin receipt of adeleted text end new text begin the new text end disbursementnew text begin datenew text end , the participant must provide the commissioner with verification that the full amount of loan repayment disbursement has been applied toward the designated loans. A participant that previously received funds under this section but has not provided the commissioner with such verification is not eligible to receive additional funds.

Sec. 16.

new text begin [136A.1792] PROMOTION OF FEDERAL PUBLIC SERVICE LOAN FORGIVENESS PROGRAMS. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Employer" means an organization, agency, or entity that is a public service organization under Code of Federal Regulations, title 34, part 685, section 219, provided that the following are not employers: new text end

new text begin (1) a federal or tribal government organization, agency, or entity; and new text end

new text begin (2) a tribal college or university. new text end

new text begin (c) "Employment certification form" means the form used by the United States Department of Education to certify an individual's employment at a public service organization for the purposes of the federal public service loan forgiveness program. new text end

new text begin (d) "Federal loan forgiveness program" means a loan forgiveness program offered under Code of Federal Regulations, title 34, part 685. new text end

new text begin (e) "Public service loan forgiveness program" means the loan forgiveness program under Code of Federal Regulations, title 34, part 685, section 219. new text end

new text begin (f) "Public service organization" means a public service organization under Code of Federal Regulations, title 34, part 685, section 219. new text end

new text begin Subd. 2. new text end

new text begin Promotion of federal public service loan forgiveness programs. new text end

new text begin (a) The commissioner must develop and distribute informational materials designed to increase awareness of federal public service loan forgiveness programs among Minnesota residents who are eligible for those programs. At a minimum, the commissioner must develop and distribute informational materials that public service organizations may use to promote awareness of the federal public service loan forgiveness program, including: new text end

new text begin (1) a one-page letter addressed to individuals who may be eligible for the public service loan forgiveness program that briefly summarizes the program, provides information on what an eligible individual must do in order to participate, and recommends that they contact their student loan servicer or servicers for additional information; new text end

new text begin (2) a detailed fact sheet describing the public service loan forgiveness program; and new text end

new text begin (3) a document containing answers to frequently asked questions about the public service loan forgiveness program. new text end

new text begin (b) In place of developing and publishing an informational document required under paragraph (a), the commissioner may distribute a document published by a federal agency that meets the requirements of paragraph (a). new text end

new text begin Subd. 3. new text end

new text begin Publication of informational materials. new text end

new text begin The commissioner must make the informational materials required under subdivision 2 available on the office's Web site and must verify each biennium that the informational materials contain current information. The commissioner must update and correct any informational materials that the commissioner finds inaccurate or outdated. new text end

new text begin Subd. 4. new text end

new text begin Employer information. new text end

new text begin (a) An employer must provide an employee with information about the employee's potential eligibility for the federal public service loan forgiveness program. An employer must annually provide to each employee in written or electronic form the one-page letter, fact sheet, and frequently asked questions required under subdivision 2. In addition, an employer must provide a newly hired employee with that information within two weeks of the employee's first day of employment. new text end

new text begin (b) At an employee's request, an employer must provide the employee with a copy of the employment certification form. new text end

new text begin EFFECTIVE DATE. new text end

new text begin Subdivision 4 is effective January 1, 2017. new text end

Sec. 17.

new text begin [136A.1793] PROMOTION OF TEACHER LOAN FORGIVENESS PROGRAMS. new text end

new text begin The commissioner shall provide information to public and private teacher education programs concerning public and private student loan programs that provide for full or partial repayment forgiveness. Teacher education programs must provide the information furnished by the commissioner to their teacher education students. new text end

Sec. 18.

Minnesota Statutes 2015 Supplement, section 136A.246, is amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Dual training account. new text end

new text begin A dual training account is created in the special revenue fund in the state treasury. The commissioner shall deposit into the account appropriations made for the purposes of this section. Money in the account is appropriated to the commissioner for the purposes for which it was appropriated. new text end

Sec. 19.

Minnesota Statutes 2015 Supplement, section 136A.246, is amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Administration expenses. new text end

new text begin The commissioner may expend up to five percent of the appropriation made for the purposes of this section for administration of this section. new text end

Sec. 20.

Minnesota Statutes 2015 Supplement, section 136A.87, is amended to read:

136A.87 PLANNING INFORMATION FOR POSTSECONDARY EDUCATION.

new text begin (a) new text end The office shall make available to all residents beginning in 7th grade through adulthood information about planning and preparing for postsecondary opportunities. Information must be provided to all 7th grade students and their parents annually by September 30 about planning for their postsecondary education. The office may also provide information to high school students and their parents, to adults, and to out-of-school youth.

new text begin (b) The office shall gather and share information with students and parents about the dual credit acceptance policies of each Minnesota public and private college and university. The office shall gather and share information related to the acceptance policies for concurrent enrollment courses, postsecondary enrollment options courses, advanced placement courses, and international baccalaureate courses. This information must be shared on the office's Web site and included in the information under paragraph (a). new text end

new text begin (c)new text end The information provided new text begin under paragraph (a) new text end may include the following:

(1) the need to start planning early;

(2) the availability of assistance in educational planning from educational institutions and other organizations;

(3) suggestions for studying effectively during high school;

(4) high school courses necessary to be adequately prepared for postsecondary education;

(5) encouragement to involve parents actively in planning for all phases of education;

(6) information about postsecondary education and training opportunities existing in the state, their respective missions and expectations for students, their preparation requirements, admission requirements, and student placement;

(7) ways to evaluate and select postsecondary institutions;

(8) the process of transferring credits among Minnesota postsecondary institutions and systems;

(9) the costs of postsecondary education and the availability of financial assistance in meeting these costs, including specific information about the Minnesota Promise;

(10) the interrelationship of assistance from student financial aid, public assistance, and job training programs; and

(11) financial planning for postsecondary education.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 21.

Minnesota Statutes 2015 Supplement, section 136F.302, subdivision 1, is amended to read:

Subdivision 1.

ACT new text begin or SAT new text end college ready score.

new text begin (a)new text end A state college or university deleted text begin maydeleted text end new text begin must new text end not require an individual to take a remedial, noncredit course in a subject area if the individual has received a college ready ACT new text begin or SAT new text end score in that subject area.

new text begin (b) When deciding if an individual is admitted to or if an individual may enroll in a state college or university, the state college or university must consider the individual's scores on the high school Minnesota Comprehensive Assessments, in addition to other factors determined relevant by the college or university. new text end

Sec. 22.

Minnesota Statutes 2014, section 245.92, is amended to read:

245.92 OFFICE OF OMBUDSMAN; CREATION; QUALIFICATIONS; FUNCTION.

The ombudsman for persons receiving services or treatment for mental illness, developmental disabilities, chemical dependency, or emotional disturbance shall promote the highest attainable standards of treatment, competence, efficiency, and justice. The ombudsman may gather information and data about decisions, acts, and other matters of an agency, facility, or programnew text begin , and shall monitor the treatment of individuals participating in a University of Minnesota Department of Psychiatry clinical drug trialnew text end . The ombudsman is appointed by the governor, serves in the unclassified service, and may be removed only for just cause. The ombudsman must be selected without regard to political affiliation and must be a person who has knowledge and experience concerning the treatment, needs, and rights of clients, and who is highly competent and qualified. No person may serve as ombudsman while holding another public office.

Sec. 23.

Minnesota Statutes 2014, section 245.94, is amended to read:

245.94 POWERS OF OMBUDSMAN; REVIEWS AND EVALUATIONS; RECOMMENDATIONS.

Subdivision 1.

Powers.

(a) The ombudsman may prescribe the methods by which complaints to the office are to be made, reviewed, and acted upon. The ombudsman may not levy a complaint fee.

(b) The ombudsman may mediate or advocate on behalf of a client.

(c) The ombudsman may investigate the quality of services provided to clients and determine the extent to which quality assurance mechanisms within state and county government work to promote the health, safety, and welfare of clients, other than clients in acute care facilities who are receiving services not paid for by public funds. The ombudsman is a health oversight agency as defined in Code of Federal Regulations, title 45, section 164.501.

(d) At the request of a client, or upon receiving a complaint or other information affording reasonable grounds to believe that the rights of a client who is not capable of requesting assistance have been adversely affected, the ombudsman may gather information and data about and analyze, on behalf of the client, the actions of an agency, facility, or program.

(e) The ombudsman may gather, on behalf of a client, records of an agency, facility, or programnew text begin , or records related to clinical drug trials from the University of Minnesota Department of Psychiatry,new text end if the records relate to a matter that is within the scope of the ombudsman's authority. If the records are private and the client is capable of providing consent, the ombudsman shall first obtain the client's consent. The ombudsman is not required to obtain consent for access to private data on clients with developmental disabilities. The ombudsman is not required to obtain consent for access to private data on decedents who were receiving services for mental illness, developmental disabilities, or emotional disturbance. All data collected, created, received, or maintained by the ombudsman are governed by chapter 13 and other applicable law.

(f) Notwithstanding any law to the contrary, the ombudsman may subpoena a person to appear, give testimony, or produce documents or other evidence that the ombudsman considers relevant to a matter under inquiry. The ombudsman may petition the appropriate court in Ramsey County to enforce the subpoena. A witness who is at a hearing or is part of an investigation possesses the same privileges that a witness possesses in the courts or under the law of this state. Data obtained from a person under this paragraph are private data as defined in section 13.02, subdivision 12.

(g) The ombudsman may, at reasonable times in the course of conducting a review, enter and view premises within the control of an agency, facility, or program.

(h) The ombudsman may attend Department of Human Services Review Board and Special Review Board proceedings; proceedings regarding the transfer of patients or residents, as defined in section 246.50, subdivisions 4 and 4a, between institutions operated by the Department of Human Services; and, subject to the consent of the affected client, other proceedings affecting the rights of clients. The ombudsman is not required to obtain consent to attend meetings or proceedings and have access to private data on clients with developmental disabilities.

(i) The ombudsman shall gather data of agencies, facilities, or programs classified as private or confidential as defined in section 13.02, subdivisions 3 and 12, regarding services provided to clients with developmental disabilities.

(j) To avoid duplication and preserve evidence, the ombudsman shall inform relevant licensing or regulatory officials before undertaking a review of an action of the facility or program.

(k)new text begin The ombudsman shall monitor the treatment of individuals participating in a University of Minnesota Department of Psychiatry clinical drug trial and ensure that all protections for human subjects required by federal law and the Institutional Review Board are provided.new text end

new text begin (l)new text end Sections 245.91 to 245.97 are in addition to other provisions of law under which any other remedy or right is provided.

Subd. 2.

Matters appropriate for review.

(a) In selecting matters for review by the office, the ombudsman shall give particular attention to unusual deaths or injuries of a client or reports of emergency use of manual restraint as identified in section 245D.061, served by an agency, facility, or program, or actions of an agency, facility, or program that:

(1) may be contrary to law or rule;

(2) may be unreasonable, unfair, oppressive, or inconsistent with a policy or order of an agency, facility, or program;

(3) may be mistaken in law or arbitrary in the ascertainment of facts;

(4) may be unclear or inadequately explained, when reasons should have been revealed;

(5) may result in abuse or neglect of a person receiving treatment;

(6) may disregard the rights of a client or other individual served by an agency or facility;

(7) may impede or promote independence, community integration, and productivity for clients; or

(8) may impede or improve the monitoring or evaluation of services provided to clients.

(b) The ombudsman shall, in selecting matters for review and in the course of the review, avoid duplicating other investigations or regulatory efforts.

new text begin (c) The ombudsman shall give particular attention to the death or unusual injury of any individual who is participating in a University of Minnesota Department of Psychiatry clinical drug trial. new text end

Subd. 2a.

Mandatory reporting.

Within 24 hours after a client suffers death or serious injury, the agency, facility, deleted text begin ordeleted text end program directornew text begin , or lead investigator of a clinical drug trial at the University of Minnesota Department of Psychiatrynew text end shall notify the ombudsman of the death or serious injury. The emergency use of manual restraint must be reported to the ombudsman as required under section 245D.061, subdivision 8. The ombudsman is authorized to receive identifying information about a deceased client according to Code of Federal Regulations, title 42, section 2.15, paragraph (b).

Subd. 3.

Complaints.

new text begin (a) new text end The ombudsman may receive a complaint from any source concerning an action of an agency, facility, or program. After completing a review, the ombudsman shall inform the complainant and the agency, facility, or program. No client may be punished nor may the general condition of the client's treatment be unfavorably altered as a result of an investigation, a complaint by the client, or by another person on the client's behalf. An agency, facility, or program shall not retaliate or take adverse action against a client or other person, who in good faith makes a complaint or assists in an investigation. The ombudsman may classify as confidential, the identity of a complainant, upon request of the complainant.

new text begin (b) The ombudsman shall receive a complaint from any source concerning an action or inaction of the University of Minnesota Department of Psychiatry related to an individual who is enrolled in a department-approved clinical drug trial. No individual participating in the trial may be punished, nor may the general condition of the individual's treatment be unfavorably altered, as a result of an investigation or a complaint by the individual or the individual's advocate. The university shall not retaliate or take adverse action against any person who in good faith makes a complaint or assists in an investigation. The ombudsman may classify the identity of the complainant as confidential, upon request of the complainant. new text end

Subd. 4.

Recommendations to agency.

(a) If, after reviewing a complaint or conducting an investigation and considering the response of an agency, facility, or program and any other pertinent material, the ombudsman determines that the complaint has merit or the investigation reveals a problem, the ombudsman may recommend that the agency, facility, or program:

(1) consider the matter further;

(2) modify or cancel its actions;

(3) alter a rule, order, or internal policy;

(4) explain more fully the action in question; or

(5) take other action.

(b) At the ombudsman's request, the agency, facility, or program shall, within a reasonable time, inform the ombudsman about the action taken on the recommendation or the reasons for not complying with it.

new text begin Subd. 5. new text end

new text begin Recommendations to University of Minnesota. new text end

new text begin If, after reviewing a complaint or conducting an investigation and considering the response of the clinical drug trial's primary investigator or the Department of Psychiatry, the ombudsman determines that the complaint has merit or the investigation reveals noncompliance with the federal protection of human subjects requirements or the requirements of the Institutional Review Board, the ombudsman shall recommend that the Board of Regents of the University of Minnesota take corrective action to remedy the violations. new text end

Sec. 24.

Minnesota Statutes 2014, section 245.95, subdivision 1, is amended to read:

Subdivision 1.

Specific reports.

The ombudsman may send conclusions and suggestions concerning any matter reviewed to the governor. Before making public a conclusion or recommendation that expressly or implicitly criticizes an agency, facility, program, or any person, the ombudsman shall consult with the governor and the agency, facility, program, or person concerning the conclusion or recommendation. When sending a conclusion or recommendation to the governor that is adverse to an agency, facility, program, or any person, the ombudsman shall include any statement of reasonable length made by that agency, facility, program, or person in defense or mitigation of the office's conclusion or recommendation.new text begin For purposes of this subdivision, "agency, facility, program, or any person" includes the University of Minnesota Department of Psychiatry and its employees working in clinical drug trials.new text end

Sec. 25.

Minnesota Statutes 2014, section 245.97, subdivision 5, is amended to read:

Subd. 5.

Medical Review Subcommittee.

At least five members of the committee, including at least three physicians, one of whom is a psychiatrist, must be designated by the governor to serve as a Medical Review Subcommittee. Terms of service, vacancies, and compensation are governed by subdivision 2. The governor shall designate one of the members to serve as chair of the subcommittee. The Medical Review Subcommittee may have access to private and confidential data collected or created by the ombudsman that are necessary to fulfill the duties of the Medical Review Subcommittee under this section and may:

(1) make a preliminary determination of whether the death of a client that has been brought to its attention is unusual or reasonably appears to have resulted from causes other than natural causes and warrants investigation;

(2) review the causes of and circumstances surrounding the death;

(3) request the county coroner or medical examiner to conduct an autopsy;

(4) assist an agency in its investigations of unusual deaths and deaths from causes other than natural causes; deleted text begin anddeleted text end

(5)new text begin make a preliminary determination of whether the death of a participant in a clinical drug trial conducted by the University of Minnesota Department of Psychiatry appears to have resulted from causes other than natural causes and warrants investigation and reporting as required by federal laws on the protection of human subjects; andnew text end

new text begin (6)new text end submit a report regarding the death of a client to the committee, the ombudsman, the client's next-of-kin, and the facility where the death occurred and, where appropriate, make recommendations to prevent recurrence of similar deaths to the head of each affected agency or facilitynew text begin , or the Board of Regents of the University of Minnesotanew text end .

Sec. 26.

Laws 2015, chapter 69, article 3, section 20, subdivision 15, is amended to read:

Subd. 15.

Reporting.

(a) A college must report to the commissioner the following information:

(1) the number of grantees and their race, gender, and ethnicity;

(2) grantee persistence and completion;

(3) employment outcomes; and

(4) other information requested by the commissioner.

(b) The commissioner shall report deleted text begin annuallydeleted text end by January 15, new text begin 2017, and January 15, 2018, new text end to the chairs and ranking minority members of the legislative committees with jurisdiction over higher education finance by college and in aggregate on the information submitted to the commissioner under paragraph (a). The commissioner may include in the report recommendations for changes in the grant program.

Sec. 27.

Laws 2015, chapter 69, article 3, section 24, subdivision 1, is amended to read:

Subdivision 1.

Pilot program created.

The commissioner of the Office of Higher Education shall make a grant to a nonprofit qualified debt counseling organization to provide individual student loan debt repayment counseling to borrowers who are Minnesota residents concerning loans obtained to attend a Minnesota postsecondary institution. deleted text begin The counseling shall be provided to borrowers who are 30 to 60 days delinquent when they are referred to or otherwise identified by the organization as candidates for counseling. deleted text end The number of individuals receiving counseling may be limited to those capable of being served with available appropriations for that purpose. A goal of the counseling program is to provide two counseling sessions to at least 75 percent of borrowers receiving counseling.

The purpose of the counseling is to assist borrowers to:

(1) understand their loan and repayment options;

(2) manage loan repayment; and

(3) develop a workable budget based on the borrower's full financial situation regarding income, expenses, and other debt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and is retroactive to July 1, 2015. new text end

Sec. 28.

new text begin STATE GRANT TUITION CAPS. new text end

new text begin For the purposes of the state grant program under Minnesota Statutes, section 136A.121, for the fiscal year ending June 30, 2017, the tuition maximum is $5,736 for students in two-year programs and the tuition maximum is $14,186 for students in four-year programs. new text end

Sec. 29.

new text begin MNSCU PROGRAM FOR STUDENTS WITH INTELLECTUAL AND DEVELOPMENTAL DISABILITIES; PLAN REQUIRED. new text end

new text begin Subdivision 1. new text end

new text begin Development of plan required. new text end

new text begin The Board of Trustees of the Minnesota State Colleges and Universities must develop a plan for offering an academic program for students with intellectual and developmental disabilities, consistent with the principles established in subdivisions 2 to 4. new text end

new text begin Subd. 2. new text end

new text begin Program locations. new text end

new text begin The plan developed must assume the program will be offered at up to four college or university campuses chosen based on (1) their ability to offer a robust program using existing facilities and resources and (2) a goal to provide the program in diverse geographic regions of the state. new text end

new text begin Subd. 3. new text end

new text begin Enrollment and admission. new text end

new text begin The plan developed must assume an enrollment goal for each campus's program of at least ten incoming students per academic year. The plan may allow for students to be admitted based on an application process that includes an in-person interview; an independent assessment of an applicant's interest, motivation, and likelihood of success in the program; and any other eligibility requirements established by the board. Upon successful completion, a student must be awarded a certificate, diploma, or other appropriate academic credential. new text end

new text begin Subd. 4. new text end

new text begin Curriculum and activities. new text end

new text begin (a) The plan developed must assume a program that provides an inclusive, two-year full-time residential college experience for students with intellectual and developmental disabilities. The required curriculum must include core courses that develop life skills, financial literacy, and the ability to live independently; rigorous academic work in a student's chosen field of study; and an internship, apprenticeship, or other skills-based experience to prepare for meaningful employment upon completion of the program. new text end

new text begin (b) In addition to academic requirements, the plan developed must allow participating students the opportunity to engage fully in campus life. Program activities must include but are not limited to (1) the establishment of on-campus mentoring and peer support communities and (2) opportunities for personal growth through leadership development and other community engagement activities. new text end

new text begin (c) A participating campus may tailor its program curriculum and activities to highlight academic programs, student and community life experiences, and employment opportunities unique to that campus or the region of the state where the campus is located. new text end

new text begin Subd. 5. new text end

new text begin Report to legislature. new text end

new text begin The board must submit a report on the plan required to be developed by this section to the chairs and ranking minority members of the committees of the legislature with jurisdiction over higher education finance and policy and human services finance and policy no later than January 15, 2017. The report must describe program plans, including strategies for recruitment of applicants, and strategies to address anticipated program needs that cannot be filled using existing campus or system resources. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 30.

new text begin UNIVERSITY OF MINNESOTA AND MNSCU BUDGET ALLOCATION REPORTS. new text end

new text begin (a) The Board of Regents of the University of Minnesota shall report by February 1, 2017, to the chairs and ranking minority members of the legislative committees with primary jurisdiction over higher education finance on the factors it considers when allocating funds to system campuses. The report must specifically, without limitation, address the following questions: new text end

new text begin (1) what circumstances would lead the university to adopt an alternate budget model to the Resource Responsibility Center (RRC) model for a system campus; new text end

new text begin (2) what were the rationale and factors considered for the initial base budget allocation to system campuses when the RRC was first established; and new text end

new text begin (3) what factors would lead the university to consider adjusting the initial base allocation model. new text end

new text begin (b) The Board of Trustees of the Minnesota State Colleges and Universities shall report by February 1, 2017, to the chairs and ranking minority members of the legislative committees with primary jurisdiction over higher education finance on the factors it considers when allocating state funds to colleges and universities. The report must specifically, without limitations, address the following areas: new text end

new text begin (1) the design and methodology for the allocation of state funds to the colleges and universities; and new text end

new text begin (2) the factors considered in the allocation process. new text end

Sec. 31.

new text begin EQUITY IN EDUCATION AND JOB CONNECTION GRANT PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Grants. new text end

new text begin (a) The commissioner of the Office of Higher Education shall award grants to improve postsecondary attendance, completion, and retention and the obtaining of well-paying jobs for which the postsecondary education provides training by providing services to historically underrepresented college students. Grants must be awarded to Minnesota state colleges and universities and private organization programs that help the state reach the attainment goals under Minnesota Statutes, section 135A.012. Programs must provide services targeted to make the improvements including, but not limited to: new text end

new text begin (1) academic and nonacademic counseling or advising; new text end

new text begin (2) mentoring in education and career opportunities; new text end

new text begin (3) structured tutoring; new text end

new text begin (4) career awareness and exploration including internships and post graduation job placements; new text end

new text begin (5) orientation to college life; new text end

new text begin (6) financial aid counseling; new text end

new text begin (7) academic instruction programs in core curricular areas of mathematics and language arts; new text end

new text begin (8) supplemental instruction programs for college courses with high failure and withdrawal rates; and new text end

new text begin (9) co-requisite college course models for delivery of academic support. new text end

new text begin (b) The office shall structure the grants for sustainability of programs funded by a grant. new text end

new text begin (c) To the extent there are sufficient qualified applicants, approximately 50 percent of grant dollars must be awarded to private organization programs. new text end

new text begin (d) A grant must not be made to a private organization that is a postsecondary institution. new text end

new text begin Subd. 2. new text end

new text begin Application process. new text end

new text begin (a) The commissioner shall develop a grant application process. The commissioner shall attempt to support projects in a manner that ensures that eligible students throughout the state have access to program services. new text end

new text begin (b) The grant application must include, at a minimum, the following information: new text end

new text begin (1) a description of the characteristics of the students to be served reflective of the need for services listed in subdivision 1; new text end

new text begin (2) a description of the services to be provided and a timeline for implementation of the service activities; new text end

new text begin (3) a description of how the services provided will foster postsecondary retention and completion; new text end

new text begin (4) a description of how the services will be evaluated to determine whether the program goals were met; new text end

new text begin (5) the history of the applicant in achieving successful improvements using the services for which a grant is sought; new text end

new text begin (6) the assumed cost per student of achieving successful outcomes; new text end

new text begin (7) the effect of the grant on assisting students to obtain well-paying jobs; new text end

new text begin (8) the proposed grant match; new text end

new text begin (9) the organizational commitment to program sustainability; and new text end

new text begin (10) other information as identified by the commissioner. new text end

new text begin Grant recipients must specify both program and student outcome goals, and performance measures for each goal. new text end

new text begin Subd. 3. new text end

new text begin Advisory committee. new text end

new text begin The commissioner may establish and convene an advisory committee to assist the commissioner in reviewing applications and advise the commissioner on grantees and grant amounts. The members of the committee may include representatives of postsecondary institutions, organizations providing postsecondary academic and career services, and others deemed appropriate by the commissioner. new text end

new text begin Subd. 4. new text end

new text begin Outcome report. new text end

new text begin Each grant recipient must annually submit a report to the Office of Higher Education identifying its program and student goals and activities implemented. A report must include, but not be limited to, information on: new text end

new text begin (1) number of students served; new text end

new text begin (2) course taking and grade point average of participating students; new text end

new text begin (3) persistence and retention rates of participating students; new text end

new text begin (4) postsecondary graduation rates of participating students; new text end

new text begin (5) the number of students who required postsecondary academic remediation and number of remedial courses for each of those students and in the aggregate; and new text end

new text begin (6) jobs and wage rates of students after postsecondary graduation. new text end

new text begin To the extent possible, the report must breakdown outcomes by Pell grant qualification, race, and ethnicity. new text end

new text begin Subd. 5. new text end

new text begin Legislative report. new text end

new text begin By January 15 of each year through 2021, the office shall submit a report to the chairs and ranking minority members of the committees in the house of representatives and the senate with jurisdiction over higher education finance regarding the grant recipients and their activities. The report shall include information about the students served, the organizations providing services, program activities, program goals and outcomes, and program revenue sources and funding levels. new text end

ARTICLE 2

AGRICULTURE

Section 1.

new text begin APPROPRIATIONS.new text end

new text begin The sums shown in the columns marked "Appropriations" are added to the appropriations in Laws 2015, First Special Session chapter 4, or appropriated to the agencies and for the purposes specified in this article. The appropriations are from the general fund, or another named fund, and are available for the fiscal year indicated for each purpose. The figures "2016" and "2017" used in this article mean that the addition to the appropriations listed under them are available for the fiscal year ending June 30, 2016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal year 2017. Appropriations for fiscal year 2016 are effective the day following final enactment. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2016 new text end new text begin 2017 new text end

Sec. 2.

new text begin DEPARTMENT OF AGRICULTURE new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 4,433,000 new text end

new text begin $250,000 the second year is for the tractor rollover protection pilot program under Minnesota Statutes, section 17.119. This is a onetime appropriation. new text end

new text begin $250,000 the second year is to administer the industrial hemp pilot program under Minnesota Statutes, section 18K.09. This is a onetime appropriation. new text end

new text begin $1,000,000 the second year is for grants to the Board of Regents of the University of Minnesota to fund the Forever Green Agriculture Initiative and to protect the state's natural resources while increasing the efficiency, profitability, and productivity of Minnesota farmers by incorporating perennial and winter annual crops into existing agricultural practices. This is a onetime appropriation and is available until June 30, 2019. The appropriation in Laws 2015, First Special Session chapter 2, article 2, section 3, paragraph (i), is available until June 30, 2018. new text end

new text begin $600,000 the second year is for a grant to the Board of Regents of the University of Minnesota to develop, in consultation with the commissioner of agriculture and the Board of Animal Health, a software tool or application through the Veterinary Diagnostic Laboratory that empowers veterinarians and producers to understand the movement of unique pathogen strains in livestock and poultry production systems, monitor antibiotic resistance, and implement effective biosecurity measures that promote animal health and limit production losses. The base for fiscal year 2020 is $0. new text end

new text begin In addition to the amounts appropriated in Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4: new text end

new text begin (1) $450,000 the second year is appropriated for transfer to the Board of Regents of the University of Minnesota for the cultivated wild rice breeding project at the North Central Research and Outreach Center to include a tenure track/research associate plant breeder; and new text end

new text begin (2) $350,000 the second year is appropriated for transfer to the Board of Regents of the University of Minnesota for potato breeding. new text end

new text begin $283,000 the second year is for a grant to the Board of Regents of the University of Minnesota to maintain and increase animal disease testing capacity through the purchase of Veterinary Diagnostic Laboratory equipment. This is a onetime appropriation. new text end

new text begin $250,000 the second year is appropriated for transfer to the good food access account created under Minnesota Statutes, section 17.1017, subdivision 3. This is a onetime appropriation and is available until June 30, 2019. new text end

new text begin $1,000,000 the second year is appropriated for transfer to the agricultural emergency account in the agricultural fund. This is a onetime transfer. new text end

Sec. 3.

new text begin [17.041] AGRICULTURAL EMERGENCY ACCOUNT; APPROPRIATION. new text end

new text begin Subdivision 1. new text end

new text begin Establishment; appropriation. new text end

new text begin An agricultural emergency account is established in the agricultural fund. Money in the account, including interest, is appropriated to the commissioner for emergency response and preparedness activities for agricultural emergencies affecting producers of livestock, poultry, crops, or other agricultural products. Eligible uses include, but are not limited to, purchasing necessary equipment and reimbursing costs incurred by local units of government that are not eligible for reimbursement from other sources. new text end

new text begin Subd. 2. new text end

new text begin Transfer authorized. new text end

new text begin The commissioner may transfer money in the account to the Board of Animal Health, other state agencies, or the University of Minnesota for purposes of subdivision 1. new text end

new text begin Subd. 3. new text end

new text begin Annual report. new text end

new text begin No later than February 1 each year, the commissioner must report activities and expenditures under this section to the legislative committees and divisions with jurisdiction over agriculture finance. new text end

Sec. 4.

new text begin [17.1017] GOOD FOOD ACCESS PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, unless the language or context indicates that a different meaning is intended, the following terms have the meanings given them. new text end

new text begin (b) "Account" means the good food access account established in subdivision 3. new text end

new text begin (c) "Commissioner" means the commissioner of agriculture. new text end

new text begin (d) "Economic or community development financial institution (ECDFI)" means a lender, including but not limited to a community development financial institution (CDFI), an economic development district (EDD), a political subdivision of the state, a microenterprise firm, or a nonprofit community lending organization that has previous experience lending to a food retailer, producer, or another healthy food enterprise in an underserved community in a low-income or moderate-income area, as defined in this section; has been in existence and operating prior to January 1, 2014; has demonstrated the ability to raise matching capital and in-kind services to leverage appropriated money; has the demonstrated ability to underwrite loans and grants; and has partnered previously with nonprofit healthy food access, public health, or related governmental departments or community organizations. new text end

new text begin (e) "Farmers' market" means an association of three or more persons who assemble at a defined location that is open to the public for the purpose of selling directly to the consumer the products of a farm or garden occupied and cultivated by the person selling the product. new text end

new text begin (f) "Financing" means loans, including low-interest loans, zero-interest loans, forgivable loans, and other types of financial assistance other than grants. new text end

new text begin (g) "Food hub" means a centrally located facility with a business management structure that facilitates the aggregation, storage, processing, distribution, marketing, and sale of locally or regionally produced food products, and which may include a small-scale retail grocery operation. new text end

new text begin (h) "Good Food Access Program Advisory Committee" means the Good Food Access Program Advisory Committee under section 17.1018. new text end

new text begin (i) "Grocery store" means a for-profit, not-for-profit, or cooperative self-service retail establishment that sells primarily meat, fish, seafood, fruits, vegetables, dry groceries, and dairy products and may also sell household products, sundries, and other products. Grocery store includes a supermarket or a large-, mid-, or small-scale retail grocery establishment and may include a mobile food market or a delivery service operation. new text end

new text begin (j) "Low-income area" means a census tract as reported in the most recently completed decennial census published by the United States Bureau of the Census that has a poverty rate of at least 20 percent or in which the median family income does not exceed 80 percent of the greater of the statewide or metropolitan median family income. new text end

new text begin (k) "Moderate-income area" means a census tract as reported in the most recently completed decennial census published by the United States Bureau of the Census in which the median family income is between 81 percent and 95 percent of the median family income for that area. new text end

new text begin (l) "Mobile food market" means a self-contained for-profit, not-for-profit, or cooperative retail grocery operation located in a movable new or renovated truck, bus, or other vehicle that is used to store, prepare, display, and sell primarily meat, fish, seafood, fruits, vegetables, dry groceries, and dairy products and may also be used to sell a nominal supply of cooking utensils and equipment and other household products and sundries. new text end

new text begin (m) "Program" means the good food access program established in this section. new text end

new text begin (n) "Small food retailer" means a small-scale retail food outlet, other than a grocery store as defined in this section. Small food retailer includes, but is not limited to, a corner store, convenience store, farmers' market, mobile food market, and a retail food outlet operated by an emergency food program or food hub. new text end

new text begin (o) "Technical assistance" means needs-based project assistance provided through the program, including sustainability-focused individualized guidance, presentations, workshops, trainings, printed materials, mentorship opportunities, peer-to-peer opportunities, or other guidance and resources on relevant topics such as business planning, sales projections, cash flow, succession planning, financing, fund-raising, marketing, food preparation demonstrations, and workforce training. new text end

new text begin (p) "Underserved community" means a census tract that is federally designated as a food desert by the United States Department of Agriculture, or a census tract in a low-income or moderate-income area that includes a substantial subpopulation such as the elderly or the disabled that has low supermarket access, regardless of distance, due to lack of transportation. new text end

new text begin Subd. 2. new text end

new text begin Program established. new text end

new text begin (a) A good food access program is established within the Department of Agriculture to increase the availability of and access to affordable, nutritious, and culturally appropriate food, including fresh fruits and vegetables, for underserved communities in low-income and moderate-income areas by providing financial support and sustainable public-private projects to open, renovate, or expand the operations of grocery stores and small food retailers; expanding access to credit and reducing barriers to investment in underserved communities in low- and moderate-income areas; and to provide technical assistance, primarily for small food retailers with demonstrated need, to increase availability and sustainable sales of affordable, nutritious, and culturally appropriate food, including fresh fruits and vegetables, to underserved communities in low-income and moderate-income areas. The commissioner, in cooperation with public and private partners, shall establish and implement the program as provided in this section. new text end

new text begin (b) The good food access program shall be comprised of state or private grants, loans, or other types of financial and technical assistance for the establishment, construction, expansion of operations, or renovation of grocery stores and small food retailers to increase the availability of and access to affordable fresh produce and other nutritious, culturally appropriate food to underserved communities in low-income and moderate-income areas. new text end

new text begin Subd. 3. new text end

new text begin Good food access account. new text end

new text begin A good food access account is established in the agricultural fund. The account consists of money appropriated by the legislature to the commissioner, as provided by law, and any other money donated, allotted, transferred, or otherwise provided to the account. Money in the account, including interest, is appropriated to the commissioner for the purposes of this section, and shall be used, to the extent practicable, to leverage other forms of public and private financing or financial assistance for the projects. new text end

new text begin Subd. 4. new text end

new text begin Program administration. new text end

new text begin (a) The commissioner shall be the administrator of the account for auditing purposes and shall establish program requirements and a competitive process for projects applying for financial and technical assistance. new text end

new text begin (b) The commissioner may receive money or other assets from any source, including but not limited to philanthropic foundations and financial investors, for deposit into the account. new text end

new text begin (c) Through issuance of requests for proposals, the commissioner may contract with one or more qualified economic or community development financial institutions to manage the financing component of the program and with one or more qualified organizations or public agencies with financial or other program-related expertise to manage the provision of technical assistance to project grantees. new text end

new text begin (d) Money in the account at the close of each fiscal year shall remain in the account and shall not cancel. In each biennium, the commissioner shall determine the appropriate proportion of money to be allocated to loans, grants, technical assistance, and any other types of financial assistance. new text end

new text begin (e) To encourage public-private, cross-sector collaboration and investment in the account and program and to ensure that the program intent is maintained throughout implementation, the commissioner shall convene and maintain the Good Food Access Program Advisory Committee. new text end

new text begin (f) The commissioner, in cooperation with the Good Food Access Program Advisory Committee, shall manage the program, establish program criteria, facilitate leveraging of additional public and private investment, and promote the program statewide. new text end

new text begin (g) The commissioner, in cooperation with the Good Food Access Program Advisory Committee, shall establish annual monitoring and accountability mechanisms for all projects receiving financing or other financial or technical assistance through this program. new text end

new text begin Subd. 5. new text end

new text begin Eligible projects. new text end

new text begin (a) The commissioner, in cooperation with the program partners and advisors, shall establish project eligibility guidelines and application processes to be used to review and select project applicants for financing or other financial or technical assistance. All projects must be located in an underserved community or must serve primarily underserved communities in low-income and moderate-income areas. new text end

new text begin (b) Projects eligible for financing include, but are not limited to, new construction, renovations, expansions of operations, and infrastructure upgrades of grocery stores and small food retailers to improve the availability of and access to affordable, nutritious food, including fresh fruits and vegetables, and build capacity in areas of greatest need. new text end

new text begin (c) Projects eligible for other types of financial assistance such as grants or technical assistance are primarily projects throughout the state, including, but not limited to, feasibility studies, new construction, renovations, expansion of operations, and infrastructure upgrades of small food retailers. new text end

new text begin Subd. 6. new text end

new text begin Qualifications for receipt of financing and other financial or technical assistance. new text end

new text begin (a) An applicant for receipt of financing through an economic or community development financial institution, or an applicant for a grant or other financial or technical assistance, may be a for-profit or not-for-profit entity, including, but not limited to, a sole proprietorship, limited liability company, corporation, cooperative, nonprofit organization, or nonprofit community development organization. Each applicant must: new text end

new text begin (1) demonstrate community engagement in and support for the project; new text end

new text begin (2) demonstrate the capacity to successfully implement the project; new text end

new text begin (3) demonstrate a viable plan for long-term sustainability, including the ability to increase the availability of and access to affordable, nutritious, and culturally appropriate food, including fresh fruits and vegetables, for underserved communities in low-income and moderate-income areas; and new text end

new text begin (4) demonstrate the ability to repay the debt, to the extent that the financing requires repayment. new text end

new text begin (b) Each applicant must also agree to comply with the following conditions for a period of at least five years, except as otherwise specified in this section: new text end

new text begin (1) accept Supplemental Nutrition Assistance Program (SNAP) benefits; new text end

new text begin (2) apply to accept Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) benefits and, if approved, accept WIC benefits; new text end

new text begin (3) allocate at least 30 percent of retail space for the sale of affordable, nutritious, and culturally appropriate foods, including fruits and vegetables, low-fat and nonfat dairy, fortified dairy substitute beverages such as soy-based or nut-based dairy substitute beverages, whole grain-rich staple foods, meats, poultry, fish, seafood, and other proteins, consistent with nutrition standards in national guidelines described in the current United States Department of Agriculture Dietary Guidelines for Americans; new text end

new text begin (4) comply with all data collection and reporting requirements established by the commissioner; and new text end

new text begin (5) promote the hiring, training, and retention of local or regional residents from low-income and moderate-income areas that reflect area demographics, including communities of color. new text end

new text begin (c) A selected project that is a small food retailer is not subject to the allocation agreement under paragraph (b), clause (3), and may use financing, grants, or other financial or technical assistance for refrigeration, displays, or onetime capital expenditures for the promotion and sale of perishable foods, including a combination of affordable, nutritious, and culturally appropriate fresh or frozen dairy, dairy substitute products, produce, meats, poultry, and fish, consistent with nutrition standards in national guidelines described in the current United States Department of Agriculture Dietary Guidelines for Americans. new text end

new text begin Subd. 7. new text end

new text begin Additional selection criteria. new text end

new text begin In determining which qualified projects to finance, and in determining which qualified projects to provide with grants or other types of financial or technical assistance, the commissioner, in cooperation with any entities with which the commissioner contracts for those purposes and the Good Food Access Program Advisory Committee, shall also consider: new text end

new text begin (1) the level of need in the area to be served; new text end

new text begin (2) the degree to which the project requires an investment of public support, or technical assistance where applicable, to move forward, build capacity, create community impact, or be competitive; new text end

new text begin (3) the likelihood that the project will have positive economic and health impacts on the underserved community, including creation and retention of jobs for local or regional residents from low-income and moderate-income areas that reflect area demographics, including communities of color; new text end

new text begin (4) the degree to which the project will participate in state and local health department initiatives to educate consumers on nutrition, promote healthy eating and healthy weight, and support locally grown food products through programs such as Minnesota Grown; and new text end

new text begin (5) any other criteria that the commissioner, in cooperation with public and private partners, determines to be consistent with the purposes of this chapter. new text end

new text begin Subd. 8. new text end

new text begin Eligible costs. new text end

new text begin Financing for project loans, including low-interest, zero-interest, and forgivable loans, grants, and other financial or technical assistance, may be used to support one or more of the following purposes: new text end

new text begin (1) site acquisition and preparation; new text end

new text begin (2) predevelopment costs, including but not limited to feasibility studies, market studies, and appraisals; new text end

new text begin (3) construction and build-out costs; new text end

new text begin (4) equipment and furnishings; new text end

new text begin (5) workforce or retailer training; and new text end

new text begin (6) working capital. new text end

new text begin Subd. 9. new text end

new text begin Legislative report. new text end

new text begin The commissioner, in cooperation with any economic or community development financial institution and any other entity with which it contracts, shall submit an annual report on the good food access program by January 15 of each year to the chairs and ranking minority members of the house of representatives and senate committees and divisions with jurisdiction over agriculture policy and finance. The annual report shall include, but not be limited to, a summary of the following metrics: new text end

new text begin (1) the number and types of projects financed; new text end

new text begin (2) the amount of dollars leveraged or matched per project; new text end

new text begin (3) the geographic distribution of financed projects; new text end

new text begin (4) the number and types of technical assistance recipients; new text end

new text begin (5) any market or commodity expansion associated with increased access; new text end

new text begin (6) the demographics of the areas served; new text end

new text begin (7) the costs of the program; new text end

new text begin (8) the number of SNAP and WIC dollars spent; new text end

new text begin (9) any increase in retail square footage; new text end

new text begin (10) the number of loans or grants to minority-owned or female-owned businesses; and new text end

new text begin (11) measurable economic and health outcomes, including, but not limited to, increases in sales and consumption of locally sourced and other fresh fruits and vegetables, the number of construction and retail jobs retained or created, and any health initiatives associated with the program. new text end

Sec. 5.

new text begin [17.1018] GOOD FOOD ACCESS PROGRAM ADVISORY COMMITTEE. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin As used in this section, the following terms have the meanings given them: new text end

new text begin (1) "program" means the good food access program under section 17.1017; and new text end

new text begin (2) "commissioner" means the commissioner of agriculture. new text end

new text begin Subd. 2. new text end

new text begin Creation. new text end

new text begin The Good Food Access Program Advisory Committee consists of the following members, appointed by the commissioner of agriculture, unless otherwise specified: new text end

new text begin (1) the commissioners of health, employment and economic development, and human services, or their respective designees; new text end

new text begin (2) one person representing the grocery industry; new text end

new text begin (3) two people representing economic or community development, one rural member and one urban or suburban member; new text end

new text begin (4) two people representing political subdivisions of the state; new text end

new text begin (5) one person designated by the Council for Minnesotans of African Heritage; new text end

new text begin (6) one person designated by the Minnesota Indian Affairs Council; new text end

new text begin (7) one person designated by the Council on Asian Pacific Minnesotans; new text end

new text begin (8) one person designated by the Chicano Latino Affairs Council; new text end

new text begin (9) one person designated by the Minnesota Farmers Union; new text end

new text begin (10) one person representing public health experts; new text end

new text begin (11) one person representing philanthropic foundations; new text end

new text begin (12) one person representing economic or community development financial institutions; new text end

new text begin (13) one person representing the University of Minnesota Regional Sustainable Development Partnerships; new text end

new text begin (14) two people representing organizations engaged in addressing food security, one representative from a statewide hunger relief organization and one from a community-based organization; new text end

new text begin (15) one person representing immigrant farmer-led organizations; new text end

new text begin (16) one person representing small business technical assistance with experience in food retail; and new text end

new text begin (17) up to four additional members with economic development, health equity, financial, or other relevant expertise. new text end

new text begin At least half of the members must reside in or their organizations must serve rural Minnesota. The commissioner may remove members and fill vacancies as provided in section 15.059, subdivision 4. new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The advisory committee must advise the commissioner of agriculture on managing the program, establishing program criteria, establishing project eligibility guidelines, establishing application processes and additional selection criteria, establishing annual monitoring and accountability mechanisms, facilitating leveraging of additional public and private investments, and promoting the program statewide. new text end

new text begin Subd. 4. new text end

new text begin Meetings. new text end

new text begin The commissioner must convene the advisory committee at least two times per year to achieve the committee's duties. new text end

new text begin Subd. 5. new text end

new text begin Administrative support. new text end

new text begin The commissioner of agriculture must provide staffing, meeting space, and administrative services for the advisory committee. new text end

new text begin Subd. 6. new text end

new text begin Chair. new text end

new text begin The commissioner of agriculture or the commissioner's designee shall serve as chair of the committee. new text end

new text begin Subd. 7. new text end

new text begin Compensation. new text end

new text begin The public members of the advisory committee serve without compensation or payment of expenses. new text end

new text begin Subd. 8. new text end

new text begin Expiration. new text end

new text begin The advisory committee does not expire. new text end

Sec. 6.

Minnesota Statutes 2014, section 17.117, subdivision 4, is amended to read:

Subd. 4.

Definitions.

(a) For the purposes of this section, the terms defined in this subdivision have the meanings given them.

(b) "Agricultural and environmental revolving accounts" means accounts in the agricultural fund, controlled by the commissioner, which hold funds available to the program.

(c) "Agriculture supply business" means a person, partnership, joint venture, corporation, limited liability company, association, firm, public service company, or cooperative that provides materials, equipment, or services to farmers or agriculture-related enterprises.

(d) "Allocation" means the funds awarded to an applicant for implementation of best management practices through a competitive or noncompetitive application process.

(e) "Applicant" means a local unit of government eligible to participate in this program that requests an allocation of funds as provided in subdivision 6b.

(f) "Best management practices" has the meaning given in sections 103F.711, subdivision 3, and 103H.151, subdivision 2deleted text begin , ordeleted text end new text begin . Best management practices also meansnew text end other practices, techniques, and measures that have been demonstrated to the satisfaction of the commissionernew text begin : (1)new text end to prevent or reduce adverse environmental impacts by using the most effective and practicable means of achieving environmental goalsnew text begin ; or (2) to achieve drinking water quality standards under chapter 103H or under Code of Federal Regulations, title 40, parts 141 and 143, as amendednew text end .

(g) "Borrower" means a farmer, an agriculture supply business, or a rural landowner applying for a low-interest loan.

(h) "Commissioner" means the commissioner of agriculture, including when the commissioner is acting in the capacity of chair of the Rural Finance Authority, or the designee of the commissioner.

(i) "Committed project" means an eligible project scheduled to be implemented at a future date:

(1) that has been approved and certified by the local government unit; and

(2) for which a local lender has obligated itself to offer a loan.

(j) "Comprehensive water management plan" means a state approved and locally adopted plan authorized under section 103B.231, 103B.255, 103B.311, 103C.331, 103D.401, or 103D.405.

(k) "Cost incurred" means expenses for implementation of a project accrued because the borrower has agreed to purchase equipment or is obligated to pay for services or materials already provided as a result of implementing an approved eligible project.

(l) "Farmer" means a person, partnership, joint venture, corporation, limited liability company, association, firm, public service company, or cooperative that regularly participates in physical labor or operations management of farming and files a Schedule F as part of filing United States Internal Revenue Service Form 1040 or indicates farming as the primary business activity under Schedule C, K, or S, or any other applicable report to the United States Internal Revenue Service.

(m) "Lender agreement" means an agreement entered into between the commissioner and a local lender which contains terms and conditions of participation in the program.

(n) "Local government unit" means a county, soil and water conservation district, or an organization formed for the joint exercise of powers under section 471.59 with the authority to participate in the program.

(o) "Local lender" means a local government unit as defined in paragraph (n), a state or federally chartered bank, a savings association, a state or federal credit union, Agribank and its affiliated organizations, or a nonprofit economic development organization or other financial lending institution approved by the commissioner.

(p) "Local revolving loan account" means the account held by a local government unit and a local lender into which principal repayments from borrowers are deposited and new loans are issued in accordance with the requirements of the program and lender agreements.

(q) "Nonpoint source" has the meaning given in section 103F.711, subdivision 6.

(r) "Program" means the agriculture best management practices loan program in this section.

(s) "Project" means one or more components or activities located within Minnesota that are required by the local government unit to be implemented for satisfactory completion of an eligible best management practice.

(t) "Rural landowner" means the owner of record of Minnesota real estate located in an area determined by the local government unit to be rural after consideration of local land use patterns, zoning regulations, jurisdictional boundaries, local community definitions, historical uses, and other pertinent local factors.

(u) "Water-quality cooperative" has the meaning given in section 115.58, paragraph (d), except as expressly limited in this section.

Sec. 7.

Minnesota Statutes 2014, section 17.117, subdivision 11a, is amended to read:

Subd. 11a.

Eligible projects.

new text begin (a) new text end All projects that remediate or mitigate adverse environmental impacts are eligible ifdeleted text begin :deleted text end

deleted text begin (1)deleted text end the project is eligible under deleted text begin thedeleted text end new text begin annew text end allocation agreement deleted text begin and funding sources designated by the local government unit to finance the project; anddeleted text end new text begin .new text end

deleted text begin (2)deleted text end new text begin (b) Anew text end manure management deleted text begin projects remediatedeleted text end new text begin project is eligible if the project remediatesnew text end or deleted text begin mitigatedeleted text end new text begin mitigatesnew text end impacts from facilities with less than 1,000 animal units as defined in Minnesota Rules, chapter 7020new text begin , and otherwise meets the requirements of this sectionnew text end .

new text begin (c) A drinking water project is eligible if the project: new text end

new text begin (1) remediates the adverse environmental impacts or presence of contaminants in private well water; new text end

new text begin (2) implements best management practices to achieve drinking water standards; and new text end

new text begin (3) otherwise meets the requirements of this section. new text end

Sec. 8.

new text begin [17.119] TRACTOR ROLLOVER PROTECTION PILOT GRANT PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Grants; eligibility. new text end

new text begin (a) The commissioner must award cost-share grants to Minnesota farmers who retrofit eligible tractors and Minnesota schools that retrofit eligible tractors with eligible rollover protective structures. Grants are limited to 70 percent of the farmer's or school's documented cost to purchase, ship, and install an eligible rollover protective structure. The commissioner must increase the grant award amount over the 70 percent grant limitation requirement if necessary to limit a farmer's or school's cost per tractor to no more than $500. new text end

new text begin (b) A rollover protective structure is eligible if it meets or exceeds SAE International standard J2194. new text end

new text begin (c) A tractor is eligible if the tractor was built before 1987. new text end

new text begin Subd. 2. new text end

new text begin Promotion; administration. new text end

new text begin The commissioner may spend up to 20 percent of total program dollars each fiscal year to promote and administer the program to Minnesota farmers and schools. new text end

new text begin Subd. 3. new text end

new text begin Nonstate sources; appropriation. new text end

new text begin The commissioner must accept contributions from nonstate sources to supplement state appropriations for this program. Contributions received under this subdivision are appropriated to the commissioner for purposes of this section. new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin This section expires on June 30, 2019. new text end

Sec. 9.

Minnesota Statutes 2014, section 18B.26, subdivision 3, is amended to read:

Subd. 3.

Registration application and gross sales fee.

(a) For an agricultural pesticide, a registrant shall pay an annual registration application fee for each agricultural pesticide of $350. The fee is due by December 31 preceding the year for which the application for registration is made. The fee is nonrefundable.

(b) For a nonagricultural pesticide, a registrant shall pay a minimum annual registration application fee for each nonagricultural pesticide of $350. The fee is due by December 31 preceding the year for which the application for registration is made. The fee is nonrefundable. deleted text begin Thedeleted text end new text begin If the registrant's annual gross sales of the nonagricultural pesticide exceeded $70,000 in the previous calendar year, thenew text end registrant deleted text begin of a nonagricultural pesticidedeleted text end shall pay, in addition to the $350 minimum fee, a fee deleted text begin ofdeleted text end new text begin equal tonew text end 0.5 percent of new text begin that portion of the new text end annual gross sales deleted text begin of thedeleted text end new text begin over $70,000. For purposes of this subdivision, gross sales includes bothnew text end nonagricultural pesticide new text begin sold new text end in the state and deleted text begin the annual gross sales of thedeleted text end nonagricultural pesticide sold into the state for use in this state. No new text begin additional new text end fee is required if the fee due amount based on percent of annual gross sales of a nonagricultural pesticide is less than $10. The registrant shall secure sufficient sales information of nonagricultural pesticides distributed into this state from distributors and dealers, regardless of distributor location, to make a determination. Sales of nonagricultural pesticides in this state and sales of nonagricultural pesticides for use in this state by out-of-state distributors are not exempt and must be included in the registrant's annual report, as required under paragraph (g), and fees shall be paid by the registrant based upon those reported sales. Sales of nonagricultural pesticides in the state for use outside of the state are exempt from the gross sales fee in this paragraph if the registrant properly documents the sale location and distributors. A registrant paying more than the minimum fee shall pay the balance due by March 1 based on the gross sales of the nonagricultural pesticide by the registrant for the preceding calendar year. A pesticide determined by the commissioner to be a sanitizer or disinfectant is exempt from the gross sales fee.

(c) For agricultural pesticides, a licensed agricultural pesticide dealer or licensed pesticide dealer shall pay a gross sales fee of 0.55 percent of annual gross sales of the agricultural pesticide in the state and the annual gross sales of the agricultural pesticide sold into the state for use in this state.

(d) In those cases where a registrant first sells an agricultural pesticide in or into the state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer license and is responsible for payment of the annual gross sales fee under paragraph (c), record keeping under paragraph (i), and all other requirements of section 18B.316.

(e) If the total annual revenue from fees collected in fiscal year 2011, 2012, or 2013, by the commissioner on the registration and sale of pesticides is less than $6,600,000, the commissioner, after a public hearing, may increase proportionally the pesticide sales and product registration fees under this chapter by the amount necessary to ensure this level of revenue is achieved. The authority under this section expires on June 30, 2014. The commissioner shall report any fee increases under this paragraph 60 days before the fee change is effective to the senate and house of representatives agriculture budget divisions.

(f) An additional fee of 50 percent of the registration application fee must be paid by the applicant for each pesticide to be registered if the application is a renewal application that is submitted after December 31.

(g) A registrant must annually report to the commissioner the amount, type and annual gross sales of each registered nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state. The report shall be filed by March 1 for the previous year's registration. The commissioner shall specify the form of the report or approve the method for submittal of the report and may require additional information deemed necessary to determine the amount and type of nonagricultural pesticide annually distributed in the state. The information required shall include the brand name, United States Environmental Protection Agency registration number, and amount of each nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state, but the information collected, if made public, shall be reported in a manner which does not identify a specific brand name in the report.

(h) A licensed agricultural pesticide dealer or licensed pesticide dealer must annually report to the commissioner the amount, type, and annual gross sales of each registered agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the state for use in the state. The report must be filed by January 31 for the previous year's sales. The commissioner shall specify the form, contents, and approved electronic method for submittal of the report and may require additional information deemed necessary to determine the amount and type of agricultural pesticide annually distributed within the state or into the state. The information required must include the brand name, United States Environmental Protection Agency registration number, and amount of each agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the state.

(i) A person who registers a pesticide with the commissioner under paragraph (b), or a registrant under paragraph (d), shall keep accurate records for five years detailing all distribution or sales transactions into the state or in the state and subject to a fee and surcharge under this section.

(j) The records are subject to inspection, copying, and audit by the commissioner and must clearly demonstrate proof of payment of all applicable fees and surcharges for each registered pesticide product sold for use in this state. A person who is located outside of this state must maintain and make available records required by this subdivision in this state or pay all costs incurred by the commissioner in the inspecting, copying, or auditing of the records.

(k) The commissioner may adopt by rule regulations that require persons subject to audit under this section to provide information determined by the commissioner to be necessary to enable the commissioner to perform the audit.

(l) A registrant who is required to pay more than the minimum fee for any pesticide under paragraph (b) must pay a late fee penalty of $100 for each pesticide application fee paid after March 1 in the year for which the license is to be issued.

Sec. 10.

Minnesota Statutes 2014, section 41A.12, subdivision 2, is amended to read:

Subd. 2.

Activities authorized.

For the purposes of this program, the commissioner may issue grants, loans, or other forms of financial assistance. Eligible activities include, but are not limited to, grants to livestock producers under the livestock investment grant program under section 17.118, bioenergy awards deleted text begin made by the NextGen Energy Board deleted text end deleted text begin under section deleted text end deleted text begin 41A.105deleted text end deleted text begin ,deleted text end cost-share grants for the installation of biofuel blender pumps, and financial assistance to support other rural economic infrastructure activities.

Sec. 11.

Minnesota Statutes 2015 Supplement, section 41A.14, is amended to read:

41A.14 AGRICULTURE RESEARCH, EDUCATION, EXTENSION, AND TECHNOLOGY TRANSFER GRANT PROGRAM.

Subdivision 1.

Duties; grants.

The agriculture research, education, extension, and technology transfer grant program is created. The purpose of the grant program is to provide investments that will most efficiently achieve long-term agricultural productivity increases through improved infrastructure, vision, and accountability. The scope and intent of the grants, to the extent possible, shall provide for deleted text begin adeleted text end long-term base funding that allows the deleted text begin researchdeleted text end grantee to continue the functions of the research, education, deleted text begin anddeleted text end extensionnew text begin , and technology transfernew text end efforts to a practical conclusion. Priority for grants shall be given to human infrastructure. The commissioner shall provide grants for:

(1) agricultural researchnew text begin , extension,new text end and technology transfer needs deleted text begin and recipients including agricultural research and extensiondeleted text end at the University of Minnesotadeleted text begin , research and outreach centers, the College of Food, Agricultural and Natural Resource Sciences, the Minnesota Agricultural Experiment Station, University of Minnesota Extension Service, the University of Minnesota Veterinary School, the Veterinary Diagnostic Laboratory, the Stakman-Borlaug Center, and the Minnesota Agriculture Fertilizer Research and Education Council;deleted text end new text begin for use by any of the following:new text end

new text begin (i) the College of Food, Agricultural and Natural Resource Sciences; new text end

new text begin (ii) the Minnesota Agricultural Experiment Station; new text end

new text begin (iii) the University of Minnesota Extension Service; new text end

new text begin (iv) the University of Minnesota Veterinary School; new text end

new text begin (v) the Veterinary Diagnostic Laboratory; or new text end

new text begin (vi) the Stakman-Borlaug Center; new text end

(2) agriculture rapid response for plant and animal diseases and pests; and

(3) agricultural education including but not limited to the Minnesota Agriculture Education Leadership Council, farm business management, mentoring programs, graduate debt forgiveness, and high school programs.

Subd. 2.

Advisory panel.

new text begin (a) new text end In awarding grants under this section, the commissioner new text begin and a representative of the College of Food, Agricultural and Natural Resource Sciences at the University of Minnesota new text end must consult with an advisory panel consisting of the following stakeholders:

deleted text begin (1) a representative of the College of Food, Agricultural and Natural Resource Sciences at the University of Minnesota; deleted text end

deleted text begin (2)deleted text end new text begin (1)new text end a representative of the Minnesota State Colleges and Universities system;

deleted text begin (3)deleted text end new text begin (2)new text end a representative of the Minnesota Farm Bureau;

deleted text begin (4)deleted text end new text begin (3)new text end a representative of the Minnesota Farmers Union;

deleted text begin (5)deleted text end new text begin (4)new text end a person representing agriculture industry statewide;

deleted text begin (6)deleted text end new text begin (5)new text end a representative of each of the state commodity councils organized under section 17.54 and the Minnesota Pork Board;

deleted text begin (7)deleted text end new text begin (6)new text end a person representing an association of primary manufacturers of forest products;

deleted text begin (8)deleted text end new text begin (7)new text end a person representing organic or sustainable agriculture; and

deleted text begin (9)deleted text end new text begin (8)new text end a person representing statewide environment and natural resource conservation organizations.

new text begin (b) Members under paragraph (a), clauses (1) to (3) and (5), shall be chosen by their respective organizations. new text end

Subd. 3.

Account.

An agriculture research, education, extension, and technology transfer account is created in the agricultural fund in the state treasury. The account consists of money received in the form of gifts, grants, reimbursement, or appropriations from any source for any of the purposes provided in subdivision 1, and any interest or earnings of the account. Money in the account is appropriated to the commissioner of agriculture for the purposes under subdivision 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 12.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Biobased content. new text end

new text begin "Biobased content" means a chemical, polymer, monomer, or plastic that is not sold primarily for use as food, feed, or fuel and that has a biobased percentage of at least 51 percent as determined by testing representative samples using American Society for Testing and Materials specification D6866. new text end

Sec. 13.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a subdivision to read:

new text begin Subd. 2b. new text end

new text begin Biobased formulated product. new text end

new text begin "Biobased formulated product" means a product that is not sold primarily for use as food, feed, or fuel and that has a biobased content percentage of at least ten percent as determined by testing representative samples using American Society for Testing and Materials specification D6866, or that contains a biobased chemical constituent that displaces a known hazardous or toxic constituent previously used in the product formulation. new text end

Sec. 14.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a subdivision to read:

new text begin Subd. 2c. new text end

new text begin Biobutanol. new text end

new text begin "Biobutanol" means fermentation isobutyl alcohol that is derived from agricultural products, including potatoes, cereal grains, cheese whey, and sugar beets; forest products; or other renewable resources, including residue and waste generated from the production, processing, and marketing of agricultural products, forest products, and other renewable resources. new text end

Sec. 15.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a subdivision to read:

new text begin Subd. 2d. new text end

new text begin Biobutanol facility. new text end

new text begin "Biobutanol facility" means a facility at which biobutanol is produced. new text end

Sec. 16.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a subdivision to read:

new text begin Subd. 9a. new text end

new text begin Quarterly. new text end

new text begin "Quarterly" means any of the following three-month intervals in a calendar year: January through March, April through June, July through September, or October through December. new text end

Sec. 17.

Minnesota Statutes 2015 Supplement, section 41A.15, subdivision 10, is amended to read:

Subd. 10.

Renewable chemical.

"Renewable chemical" means a chemical with biobased content deleted text begin as defined in section 41A.105, subdivision 1adeleted text end .

Sec. 18.

Minnesota Statutes 2015 Supplement, section 41A.16, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or less from the state border, raw materials may be sourced from within a 100-mile radius. Raw materials must be from agricultural or forestry sources or from solid waste. The facility must be located in Minnesota, must begin production at a specific location by June 30, 2025, and must not begin operating above deleted text begin 95,000deleted text end new text begin 23,750new text end MMbtu of deleted text begin annualdeleted text end new text begin quarterly new text end biofuel production before July 1, 2015. Eligible facilities include existing companies and facilities that are adding advanced biofuel production capacity, or retrofitting existing capacity, as well as new companies and facilities. Production of conventional corn ethanol and conventional biodiesel is not eligible. Eligible advanced biofuel facilities must produce at least deleted text begin 95,000deleted text end new text begin 23,750new text end MMbtu deleted text begin a yeardeleted text end new text begin of biofuel quarterlynew text end .

(b) No payments shall be made for advanced biofuel production that occurs after June 30, 2035, for those eligible biofuel producers under paragraph (a).

(c) An eligible producer of advanced biofuel shall not transfer the producer's eligibility for payments under this section to an advanced biofuel facility at a different location.

(d) A producer that ceases production for any reason is ineligible to receive payments under this section until the producer resumes production.

(e) Renewable chemical production for which payment has been received under section 41A.17, and biomass thermal production for which payment has been received under section 41A.18, are not eligible for payment under this section.

new text begin (f) Biobutanol is eligible under this section. new text end

Sec. 19.

Minnesota Statutes 2015 Supplement, section 41A.17, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this program must source at least 80 percent biobased contentdeleted text begin , as defined in section 41A.105, subdivision 1a, clause (1),deleted text end from Minnesota. If a facility is sited 50 miles or less from the state border, biobased content must be sourced from within a 100-mile radius. Biobased content must be from agricultural or forestry sources or from solid waste. The facility must be located in Minnesota, must begin production at a specific location by June 30, 2025, and must not begin production of deleted text begin 3,000,000deleted text end new text begin 750,000new text end pounds of chemicals deleted text begin annuallydeleted text end new text begin quarterlynew text end before January 1, 2015. Eligible facilities include existing companies and facilities that are adding production capacity, or retrofitting existing capacity, as well as new companies and facilities. Eligible renewable chemical facilities must produce at least deleted text begin 3,000,000deleted text end new text begin 750,000new text end pounds deleted text begin per yeardeleted text end new text begin of renewable chemicals quarterlynew text end . Renewable chemicals produced through processes that are fully commercial before January 1, 2000, are not eligible.

(b) No payments shall be made for renewable chemical production that occurs after June 30, 2035, for those eligible renewable chemical producers under paragraph (a).

(c) An eligible producer of renewable chemicals shall not transfer the producer's eligibility for payments under this section to a renewable chemical facility at a different location.

(d) A producer that ceases production for any reason is ineligible to receive payments under this section until the producer resumes production.

(e) Advanced biofuel production for which payment has been received under section 41A.16, and biomass thermal production for which payment has been received under section 41A.18, are not eligible for payment under this section.

Sec. 20.

Minnesota Statutes 2015 Supplement, section 41A.17, subdivision 2, is amended to read:

Subd. 2.

Payment amounts; bonus; limits.

(a) The commissioner shall make payments to eligible producers of renewable chemicals located in the state. The amount of the payment for each producer's annual production is $0.03 per pound of sugar-derived renewable chemical, $0.03 per pound of cellulosic sugar, and $0.06 per pound of cellulosic-derived renewable chemical produced at a specific location for ten years after the start of production.

(b) An eligible facility producing renewable chemicals using agricultural cellulosic biomass is eligible for a 20 percent bonus payment for each deleted text begin MMbtudeleted text end new text begin poundnew text end produced from agricultural biomass that is derived from perennial crop or cover crop biomass.

(c) Total payments under this section to an eligible renewable chemical producer in a fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable chemical production. Total payments under this section to all eligible renewable chemical producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of renewable chemical production. The commissioner shall award payments on a first-come, first-served basis within the limits of available funding.

(d) For purposes of this section, an entity that holds a controlling interest in more than one renewable chemical production facility is considered a single eligible producer.

Sec. 21.

Minnesota Statutes 2015 Supplement, section 41A.18, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or less from the state border, raw materials should be sourced from within a 100-mile radius. Raw materials must be from agricultural or forestry sources. The facility must be located in Minnesota, must have begun production at a specific location by June 30, 2025, and must not begin before July 1, 2015. Eligible facilities include existing companies and facilities that are adding production capacity, or retrofitting existing capacity, as well as new companies and facilities. Eligible biomass thermal production facilities must produce at least deleted text begin 1,000deleted text end new text begin 250new text end MMbtu deleted text begin per yeardeleted text end new text begin of biomass thermal quarterlynew text end .

(b) No payments shall be made for biomass thermal production that occurs after June 30, 2035, for those eligible biomass thermal producers under paragraph (a).

(c) An eligible producer of biomass thermal production shall not transfer the producer's eligibility for payments under this section to a biomass thermal production facility at a different location.

(d) A producer that ceases production for any reason is ineligible to receive payments under this section until the producer resumes production.

(e) Biofuel production for which payment has been received under section 41A.16, and renewable chemical production for which payment has been received under section 41A.17, are not eligible for payment under this section.

Sec. 22.

new text begin [41A.20] SIDING PRODUCTION INCENTIVE. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms defined in this subdivision have the meanings given them. new text end

new text begin (b) "Commissioner" means the commissioner of agriculture. new text end

new text begin (c) "Forest resources" means raw wood logs and material primarily made up of cellulose, hemicellulose, or lignin, or a combination of those ingredients. new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin (a) A facility eligible for payment under this section must source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or less from the state border, raw materials may be sourced from within a 100-mile radius. Raw materials must be from forest resources. The facility must be located in Minnesota, must begin production at a specific location by June 30, 2025, and must not begin operating before July 1, 2017. Eligible facilities include existing companies and facilities that are adding siding production capacity, or retrofitting existing capacity, as well as new companies and facilities. Eligible siding production facilities must produce at least 200,000,000 siding square feet on a 3/8 inch nominal basis of siding each year. new text end

new text begin (b) No payments shall be made for siding production that occurs after June 30, 2035, for those eligible producers under paragraph (a). new text end

new text begin (c) An eligible producer of siding shall not transfer the producer's eligibility for payments under this section to a facility at a different location. new text end

new text begin (d) A producer that ceases production for any reason is ineligible to receive payments under this section until the producer resumes production. new text end

new text begin Subd. 3. new text end

new text begin Payment amounts; limits. new text end

new text begin (a) The commissioner shall make payments to eligible producers of siding. The amount of the payment for each eligible producer's annual production is $7.50 per 1,000 siding square feet on a 3/8 inch nominal basis of siding produced at a specific location for ten years after the start of production. new text end

new text begin (b) Total payments under this section to an eligible siding producer in a fiscal year may not exceed the amount necessary for 400,000,000 siding square feet on a 3/8 inch nominal basis of siding produced. Total payments under this section to all eligible siding producers in a fiscal year may not exceed the amount necessary for 400,000,000 siding square feet on a 3/8 inch nominal basis of siding produced. The commissioner shall award payments on a first-come, first-served basis within the limits of available funding. new text end

new text begin (c) For purposes of this section, an entity that holds a controlling interest in more than one siding facility is considered a single eligible producer. new text end

new text begin Subd. 4. new text end

new text begin Forest resources requirements. new text end

new text begin Forest resources that come from land parcels greater than 160 acres must be certified by the Forest Stewardship Council, Sustainable Forestry Initiative, or American Tree Farm System. Uncertified land from parcels of 160 acres or less and federal land must be harvested by a logger who has completed training from the Minnesota logger education program or the equivalent, and have a forest stewardship plan. new text end

new text begin Subd. 5. new text end

new text begin Claims. new text end

new text begin (a) By the last day of October, January, April, and July, each eligible siding producer shall file a claim for payment for siding production during the preceding three calendar months. An eligible siding producer that files a claim under this subdivision shall include a statement of the eligible producer's total board feet of siding produced during the quarter covered by the claim. For each claim and statement of total board feet of siding filed under this subdivision, the board feet of siding produced must be examined by a certified public accounting firm with a valid permit to practice under chapter 326A, in accordance with Statements on Standards for Attestation Engagements established by the American Institute of Certified Public Accountants. new text end

new text begin (b) The commissioner must issue payments by November 15, February 15, May 15, and August 15. A separate payment must be made for each claim filed. new text end

new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin A sum sufficient to make the payments required by this section, not to exceed $3,000,000 in a fiscal year, is annually appropriated from the general fund to the commissioner. new text end

Sec. 23.

Minnesota Statutes 2015 Supplement, section 116D.04, subdivision 2a, is amended to read:

Subd. 2a.

When prepared.

Where there is potential for significant environmental effects resulting from any major governmental action, the action shall be preceded by a detailed environmental impact statement prepared by the responsible governmental unit. The environmental impact statement shall be an analytical rather than an encyclopedic document which describes the proposed action in detail, analyzes its significant environmental impacts, discusses appropriate alternatives to the proposed action and their impacts, and explores methods by which adverse environmental impacts of an action could be mitigated. The environmental impact statement shall also analyze those economic, employment, and sociological effects that cannot be avoided should the action be implemented. To ensure its use in the decision-making process, the environmental impact statement shall be prepared as early as practical in the formulation of an action.

(a) The board shall by rule establish categories of actions for which environmental impact statements and for which environmental assessment worksheets shall be prepared as well as categories of actions for which no environmental review is required under this section. A mandatory environmental assessment worksheet shall not be required for the expansion of an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph (b), or the conversion of an ethanol plant to a biobutanol facility or the expansion of a biobutanol facility as defined in section deleted text begin 41A.105deleted text end new text begin 41A.15new text end , subdivision deleted text begin 1adeleted text end new text begin 2dnew text end , based on the capacity of the expanded or converted facility to produce alcohol fuel, but must be required if the ethanol plant or biobutanol facility meets or exceeds thresholds of other categories of actions for which environmental assessment worksheets must be prepared. The responsible governmental unit for an ethanol plant or biobutanol facility project for which an environmental assessment worksheet is prepared shall be the state agency with the greatest responsibility for supervising or approving the project as a whole.

A mandatory environmental impact statement shall not be required for a facility or plant located outside the seven-county metropolitan area that produces less than 125,000,000 gallons of ethanol, biobutanol, or cellulosic biofuel annually, or produces less than 400,000 tons of chemicals annually, if the facility or plant is: an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph (b); a biobutanol facility, as defined in section deleted text begin 41A.105deleted text end new text begin 41A.15new text end , subdivision deleted text begin 1a, clause (1)deleted text end new text begin 2dnew text end ; or a cellulosic biofuel facility. A facility or plant that only uses a cellulosic feedstock to produce chemical products for use by another facility as a feedstock shall not be considered a fuel conversion facility as used in rules adopted under this chapter.

(b) The responsible governmental unit shall promptly publish notice of the completion of an environmental assessment worksheet by publishing the notice in at least one newspaper of general circulation in the geographic area where the project is proposed, by posting the notice on a Web site that has been designated as the official publication site for publication of proceedings, public notices, and summaries of a political subdivision in which the project is proposed, or in any other manner determined by the board and shall provide copies of the environmental assessment worksheet to the board and its member agencies. Comments on the need for an environmental impact statement may be submitted to the responsible governmental unit during a 30-day period following publication of the notice that an environmental assessment worksheet has been completed. The responsible governmental unit's decision on the need for an environmental impact statement shall be based on the environmental assessment worksheet and the comments received during the comment period, and shall be made within 15 days after the close of the comment period. The board's chair may extend the 15-day period by not more than 15 additional days upon the request of the responsible governmental unit.

(c) An environmental assessment worksheet shall also be prepared for a proposed action whenever material evidence accompanying a petition by not less than 100 individuals who reside or own property in the state, submitted before the proposed project has received final approval by the appropriate governmental units, demonstrates that, because of the nature or location of a proposed action, there may be potential for significant environmental effects. Petitions requesting the preparation of an environmental assessment worksheet shall be submitted to the board. The chair of the board shall determine the appropriate responsible governmental unit and forward the petition to it. A decision on the need for an environmental assessment worksheet shall be made by the responsible governmental unit within 15 days after the petition is received by the responsible governmental unit. The board's chair may extend the 15-day period by not more than 15 additional days upon request of the responsible governmental unit.

(d) Except in an environmentally sensitive location where Minnesota Rules, part 4410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental review under this chapter and rules of the board, if:

(1) the proposed action is:

(i) an animal feedlot facility with a capacity of less than 1,000 animal units; or

(ii) an expansion of an existing animal feedlot facility with a total cumulative capacity of less than 1,000 animal units;

(2) the application for the animal feedlot facility includes a written commitment by the proposer to design, construct, and operate the facility in full compliance with Pollution Control Agency feedlot rules; and

(3) the county board holds a public meeting for citizen input at least ten business days prior to the Pollution Control Agency or county issuing a feedlot permit for the animal feedlot facility unless another public meeting for citizen input has been held with regard to the feedlot facility to be permitted. The exemption in this paragraph is in addition to other exemptions provided under other law and rules of the board.

(e) The board may, prior to final approval of a proposed project, require preparation of an environmental assessment worksheet by a responsible governmental unit selected by the board for any action where environmental review under this section has not been specifically provided for by rule or otherwise initiated.

(f) An early and open process shall be utilized to limit the scope of the environmental impact statement to a discussion of those impacts, which, because of the nature or location of the project, have the potential for significant environmental effects. The same process shall be utilized to determine the form, content and level of detail of the statement as well as the alternatives which are appropriate for consideration in the statement. In addition, the permits which will be required for the proposed action shall be identified during the scoping process. Further, the process shall identify those permits for which information will be developed concurrently with the environmental impact statement. The board shall provide in its rules for the expeditious completion of the scoping process. The determinations reached in the process shall be incorporated into the order requiring the preparation of an environmental impact statement.

(g) The responsible governmental unit shall, to the extent practicable, avoid duplication and ensure coordination between state and federal environmental review and between environmental review and environmental permitting. Whenever practical, information needed by a governmental unit for making final decisions on permits or other actions required for a proposed project shall be developed in conjunction with the preparation of an environmental impact statement. When an environmental impact statement is prepared for a project requiring multiple permits for which two or more agencies' decision processes include either mandatory or discretionary hearings before a hearing officer prior to the agencies' decision on the permit, the agencies may, notwithstanding any law or rule to the contrary, conduct the hearings in a single consolidated hearing process if requested by the proposer. All agencies having jurisdiction over a permit that is included in the consolidated hearing shall participate. The responsible governmental unit shall establish appropriate procedures for the consolidated hearing process, including procedures to ensure that the consolidated hearing process is consistent with the applicable requirements for each permit regarding the rights and duties of parties to the hearing, and shall utilize the earliest applicable hearing procedure to initiate the hearing.

(h) An environmental impact statement shall be prepared and its adequacy determined within 280 days after notice of its preparation unless the time is extended by consent of the parties or by the governor for good cause. The responsible governmental unit shall determine the adequacy of an environmental impact statement, unless within 60 days after notice is published that an environmental impact statement will be prepared, the board chooses to determine the adequacy of an environmental impact statement. If an environmental impact statement is found to be inadequate, the responsible governmental unit shall have 60 days to prepare an adequate environmental impact statement.

(i) The proposer of a specific action may include in the information submitted to the responsible governmental unit a preliminary draft environmental impact statement under this section on that action for review, modification, and determination of completeness and adequacy by the responsible governmental unit. A preliminary draft environmental impact statement prepared by the project proposer and submitted to the responsible governmental unit shall identify or include as an appendix all studies and other sources of information used to substantiate the analysis contained in the preliminary draft environmental impact statement. The responsible governmental unit shall require additional studies, if needed, and obtain from the project proposer all additional studies and information necessary for the responsible governmental unit to perform its responsibility to review, modify, and determine the completeness and adequacy of the environmental impact statement.

Sec. 24.

Minnesota Statutes 2015 Supplement, section 583.215, is amended to read:

583.215 EXPIRATION.

Sections 336.9-601, subsections (h) and (i); 550.365; 559.209; 582.039; and 583.20 to 583.32, expire June 30, deleted text begin 2016deleted text end new text begin 2018new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 25.

Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 2, is amended to read:

Subd. 2.

Protection Services

16,452,000 16,402,000
Appropriations by Fund
2016 2017
General 15,874,000 15,824,000
Agricultural 190,000 190,000
Remediation 388,000 388,000

$25,000 the first year and $25,000 the second year are to develop and maintain cottage food license exemption outreach and training materials.

$75,000 the first year is for the commissioner, in consultation with the Northeast Regional Corrections Center and the United Food and Commercial Workers, to study and provide recommendations for upgrading the existing processing facility on the campus of the Northeast Regional Corrections Center into a USDA-certified food processing facility. The commissioner shall report these recommendations to the chairs of the house of representatives and senate committees with jurisdiction over agriculture finance by March 15, 2016.

$75,000 the second year is deleted text begin for a coordinator fordeleted text end new text begin to coordinatenew text end the correctional facility vocational training pilot programnew text begin and to assist entities that have explored the feasibility of establishing a USDA-certified or state "equal to" food processing facility within 30 miles of the Northeast Regional Corrections Centernew text end .

$388,000 the first year and $388,000 the second year are from the remediation fund for administrative funding for the voluntary cleanup program.

$225,000 the first year and $175,000 the second year are for compensation for destroyed or crippled animals under Minnesota Statutes, section 3.737. This appropriation may be spent to compensate for animals that were destroyed or crippled during fiscal years 2014 and 2015. If the amount in the first year is insufficient, the amount in the second year is available in the first year.

$125,000 the first year and $125,000 the second year are for compensation for crop damage under Minnesota Statutes, section 3.7371. If the amount in the first year is insufficient, the amount in the second year is available in the first year.

If the commissioner determines that claims made under Minnesota Statutes, section 3.737 or 3.7371, are unusually high, amounts appropriated for either program may be transferred to the appropriation for the other program.

$70,000 the first year and $70,000 the second year are for additional cannery inspections.

$100,000 the first year and $100,000 the second year are for increased oversight of delegated local health boards.

$100,000 the first year and $100,000 the second year are to decrease the turnaround time for retail food handler plan reviews.

$1,024,000 the first year and $1,024,000 the second year are to streamline the retail food safety regulatory and licensing experience for regulated businesses and to decrease the inspection delinquency rate.

$1,350,000 the first year and $1,350,000 the second year are for additional inspections of food manufacturers and wholesalers.

$150,000 the first year and $150,000 the second year are for additional funding for dairy inspection services.

$150,000 the first year and $150,000 the second year are for additional funding for laboratory services operations.

$250,000 the first year and $250,000 the second year are for additional meat inspection services, including inspections provided under the correctional facility vocational training pilot program.

Notwithstanding Minnesota Statutes, section 18B.05, $90,000 the first year and $90,000 the second year are from the pesticide regulatory account in the agricultural fund for an increase in the operating budget for the Laboratory Services Division.

$100,000 the first year and $100,000 the second year are from the pesticide regulatory account in the agricultural fund to update and modify applicator education and training materials.

Sec. 26.

Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, is amended to read:

Subd. 4.

Agriculture, Bioenergy, and Bioproduct Advancement

14,993,000 19,010,000

$4,483,000 the first year and $8,500,000 the second year are for transfer to the agriculture research, education, extension, and technology transfer account under Minnesota Statutes, section 41A.14, subdivision 3. The transfer in this paragraph includes money for plant breeders at the University of Minnesota for wild rice, potatoes, and grapes. Of these amounts, at least $600,000 each year is for deleted text begin agriculture rapid responsedeleted text end new text begin the Minnesota Agricultural Experiment Station's Agriculture Rapid Response Fund new text end under Minnesota Statutes, section 41A.14, subdivision 1, clause (2). Of the amount appropriated in this paragraph, $1,000,000 each year is for transfer to the Board of Regents of the University of Minnesota for research to determine (1) what is causing avian influenza, (2) why some fowl are more susceptible, and (3) prevention measures that can be taken. Of the amount appropriated in this paragraph, $2,000,000 each year is for grants to the Minnesota Agriculture Education Leadership Council to enhance agricultural education with priority given to Farm Business Management challenge grants.new text begin The commissioner shall transfer the remaining grant funds in this appropriation each year to the Board of Regents of the University of Minnesota for purposes of Minnesota Statutes, section 41A.14.new text end

To the extent practicable, funds expended under Minnesota Statutes, section 41A.14, subdivision 1, clauses (1) and (2), must supplement and not supplant existing sources and levels of funding. The commissioner may use up to 4.5 percent of this appropriation for costs incurred to administer the program. new text begin Any unencumbered balance does not cancel at the end of the first year and is available for the second year.new text end

$10,235,000 the first year and $10,235,000 the second year are for the agricultural growth, research, and innovation program in Minnesota Statutes, section 41A.12. No later than February 1, 2016, and February 1, 2017, the commissioner must report to the legislative committees with jurisdiction over agriculture policy and finance regarding the commissioner's accomplishments and anticipated accomplishments in the following areas: facilitating the start-up, modernization, or expansion of livestock operations including beginning and transitioning livestock operations; developing new markets for Minnesota farmers by providing more fruits, vegetables, meat, grain, and dairy for Minnesota school children; assisting value-added agricultural businesses to begin or expand, access new markets, or diversify products; developing urban agriculture; facilitating the start-up, modernization, or expansion of other beginning and transitioning farms including loans under Minnesota Statutes, section 41B.056; sustainable agriculture on farm research and demonstration; development or expansion of food hubs and other alternative community-based food distribution systems; and research on bioenergy, biobased content, or biobased formulated products and other renewable energy development. The commissioner may use up to 4.5 percent of this appropriation for costs incurred to administer the program. Any unencumbered balance does not cancel at the end of the first year and is available for the second year. Notwithstanding Minnesota Statutes, section 16A.28, the appropriations encumbered under contract on or before June 30, 2017, for agricultural growth, research, and innovation grants are available until June 30, 2019.

The commissioner may use funds appropriated for the agricultural growth, research, and innovation program as provided in this paragraph. The commissioner may award grants to owners of Minnesota facilities producing bioenergy, biobased content, or a biobased formulated product; to organizations that provide for on-station, on-farm field scale research and outreach to develop and test the agronomic and economic requirements of diverse strands of prairie plants and other perennials for bioenergy systems; or to certain nongovernmental entities. For the purposes of this paragraph, "bioenergy" includes transportation fuels derived from cellulosic material, as well as the generation of energy for commercial heat, industrial process heat, or electrical power from cellulosic materials via gasification or other processes. Grants are limited to 50 percent of the cost of research, technical assistance, or equipment related to bioenergy, biobased content, or biobased formulated product production or $500,000, whichever is less. Grants to nongovernmental entities for the development of business plans and structures related to community ownership of eligible bioenergy facilities together may not exceed $150,000. The commissioner shall make a good-faith effort to select projects that have merit and, when taken together, represent a variety of bioenergy technologies, biomass feedstocks, and geographic regions of the state. Projects must have a qualified engineer provide certification on the technology and fuel source. Grantees must provide reports at the request of the commissioner.

Of the amount appropriated for the agricultural growth, research, and innovation program in this subdivision, $1,000,000 the first year and $1,000,000 the second year are for distribution in equal amounts to each of the state's county fairs to preserve and promote Minnesota agriculture.

Of the amount appropriated for the agricultural growth, research, and innovation program in this subdivision, $500,000 in fiscal year 2016 and $1,500,000 in fiscal year 2017 are for incentive payments under Minnesota Statutes, sections 41A.16, 41A.17, and 41A.18. If the appropriation exceeds the total amount for which all producers are eligible in a fiscal year, the balance of the appropriation is available to the commissioner for the agricultural growth, research, and innovation program. Notwithstanding Minnesota Statutes, section 16A.28, the first year appropriation is available until June 30, 2017, and the second year appropriation is available until June 30, 2018. The commissioner may use up to 4.5 percent of the appropriation for administration of the incentive payment programs.

Of the amount appropriated for the agricultural growth, research, and innovation program in this subdivision, $250,000 the first year is for grants to communities to develop or expand food hubs and other alternative community-based food distribution systems. Of this amount, $50,000 is for the commissioner to consult with existing food hubs, alternative community-based food distribution systems, and University of Minnesota Extension to identify best practices for use by other Minnesota communities. No later than December 15, 2015, the commissioner must report to the legislative committees with jurisdiction over agriculture and health regarding the status of emerging alternative community-based food distribution systems in the state along with recommendations to eliminate any barriers to success. new text begin Any unencumbered balance does not cancel at the end of the first year and is available for the second year. new text end This is a onetime appropriation.

$250,000 the first year and $250,000 the second year are for grants that enable retail petroleum dispensers to dispense biofuels to the public in accordance with the biofuel replacement goals established under Minnesota Statutes, section 239.7911. A retail petroleum dispenser selling petroleum for use in spark ignition engines for vehicle model years after 2000 is eligible for grant money under this paragraph if the retail petroleum dispenser has no more than 15 retail petroleum dispensing sites and each site is located in Minnesota. The grant money received under this paragraph must be used for the installation of appropriate technology that uses fuel dispensing equipment appropriate for at least one fuel dispensing site to dispense gasoline that is blended with 15 percent of agriculturally derived, denatured ethanol, by volume, and appropriate technical assistance related to the installation. A grant award must not exceed 85 percent of the cost of the technical assistance and appropriate technology, including remetering of and retrofits for retail petroleum dispensers and replacement of petroleum dispenser projects. The commissioner may use up to $35,000 of this appropriation for administrative expenses. The commissioner shall cooperate with biofuel stakeholders in the implementation of the grant program. The commissioner must report to the legislative committees with jurisdiction over agriculture policy and finance by February 1 each year, detailing the number of grants awarded under this paragraph and the projected effect of the grant program on meeting the biofuel replacement goals under Minnesota Statutes, section 239.7911. These are onetime appropriations.

$25,000 the first year and $25,000 the second year are for grants to the Southern Minnesota Initiative Foundation to promote local foods through an annual event that raises public awareness of local foods and connects local food producers and processors with potential buyers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 27.

Laws 2015, First Special Session chapter 4, article 1, section 5, is amended to read:

Sec. 5.

AVIAN INFLUENZA RESPONSE ACTIVITIES; new text begin EMERGENCY PREPAREDNESS; new text end APPROPRIATIONS AND TRANSFERS.

(a) deleted text begin $3,619,000deleted text end new text begin $519,000new text end is appropriated from the general fund in fiscal year 2016 to the commissioner of agriculture for avian influenza emergency response activities. The commissioner may use money appropriated under this paragraph to purchase necessary euthanasia and composting equipment and to reimburse costs incurred by local units of government directly related to avian influenza emergency response activities that are not eligible for federal reimbursement. This appropriation is available the day following final enactment until June 30, 2017.

(b) $1,853,000 is appropriated from the general fund in fiscal year 2016 to the Board of Animal Health for deleted text begin avian influenza emergency response activities. The Board may use money appropriated under this paragraph to purchase necessary euthanasia and composting equipment.deleted text end new text begin any animal disease emergency response or planning activity, including but not limited to:new text end

new text begin (1) the retention of staff trained in disease response; new text end

new text begin (2) costs associated with the relocation and expansion of the Minnesota Poultry Testing Laboratory; new text end

new text begin (3) the identification of risk factors for disease transmission; and new text end

new text begin (4) the implementation of strategies to prevent or reduce the risk of disease introduction and transmission. new text end

This appropriation is available the day following final enactment until June 30, deleted text begin 2017deleted text end new text begin 2019new text end .

(c) $103,000 is appropriated from the general fund in fiscal year 2016 to the commissioner of health for avian influenza emergency response activities. This appropriation is available the day following final enactment until June 30, 2017.

(d) $350,000 is appropriated from the general fund in fiscal year 2016 to the commissioner of natural resources for sampling wild animals to detect and monitor the avian influenza virus. This appropriation may also be used to conduct serology sampling, in consultation with the Board of Animal Health and the University of Minnesota Pomeroy Chair in Avian Health, from birds within a control zone and outside of a control zone. This appropriation is available the day following final enactment until June 30, 2017.

(e) $544,000 is appropriated from the general fund in fiscal year 2016 to the commissioner of public safety to operate the State Emergency Operation Center in coordination with the statewide avian influenza response activities. Appropriations under this paragraph may also be used to support a staff person at the state's agricultural incident command post in Willmar. This appropriation is available the day following final enactment until June 30, 2017.

(f) The commissioner of management and budget may transfer unexpended balances from the appropriations in this section to any state agency for operating expenses related to avian influenza emergency response activities. The commissioner of management and budget must report each transfer to the chairs and ranking minority members of the senate Committee on Finance and the house of representatives Committee on Ways and Means.

(g) In addition to the transfers required under Laws 2015, chapter 65, article 1, section 17, no later than September 30, 2015, the commissioner of management and budget must transfer $4,400,000 from the fiscal year 2015 closing balance in the general fund to the disaster assistance contingency account in Minnesota Statutes, section 12.221, subdivision 6. This amount is available for deleted text begin avian influenza emergency responsedeleted text end new text begin eligible new text end activities as provided in Laws 2015, chapter 65, article 1, section 18new text begin , as amendednew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 28.

new text begin GOOD FOOD ACCESS ADVISORY COMMITTEE. new text end

new text begin The commissioner of agriculture and designating authorities must make their initial appointments and designations by July 1, 2016, for the Good Food Access Advisory Committee established under Minnesota Statutes, section 17.1018. The commissioner of agriculture or the commissioner's designee must convene the first meeting of the Good Food Access Advisory Committee by September 1, 2016. new text end

Sec. 29.

new text begin FARMER-LENDER MEDIATION TASK FORCE. new text end

new text begin The commissioner of agriculture must convene an advisory task force to provide recommendations to the legislature regarding the state's Farmer-Lender Mediation Act. The task force must be comprised of 14 members, including the commissioner or the commissioner's designee, one farm advocate appointed by the commissioner who is responsible for mediating debt between farmers and lenders, one adult farm business management instructor appointed by the commissioner, and three farmers appointed by the commissioner, at least one of whom is a beginning or nontraditional farmer and at least one of whom has personal experience with the farmer-lender mediation program. The remaining membership of the task force consists of one member appointed by each of the following entities: new text end

new text begin (1) Minnesota Farm Bureau; new text end

new text begin (2) Minnesota Farmers Union; new text end

new text begin (3) Minnesota Bankers Association; new text end

new text begin (4) Independent Community Bankers of Minnesota; new text end

new text begin (5) Farm Credit Services - Minnesota State Federation; new text end

new text begin (6) Minnesota Credit Union Network; new text end

new text begin (7) Minnesota-South Dakota Equipment Dealers Association; and new text end

new text begin (8) University of Minnesota Extension. new text end

new text begin No later than February 1, 2017, the commissioner must report the task force's recommendations to the legislative committees with jurisdiction over agriculture policy and finance. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 30.

new text begin TRANSFER REQUIRED. new text end

new text begin Of the amount appropriated from the general fund to the commissioner of agriculture for transfer to the rural finance authority revolving loan account in Laws 2015, First Special Session chapter 4, article 2, section 6, the commissioner of management and budget must transfer $7,713,000 back to the general fund in fiscal year 2016. This is a onetime transfer. new text end

Sec. 31.

new text begin REPEALER. new text end

new text begin Laws 2015, First Special Session chapter 4, article 2, section 81, new text end new text begin is repealed. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

ARTICLE 3

ENVIRONMENT AND NATURAL RESOURCES

Section 1.

new text begin APPROPRIATIONS.new text end

new text begin The sums shown in the columns marked "Appropriations" are added to the appropriations in Laws 2015, First Special Session chapter 4, or appropriated to the agencies and for the purposes specified in this article. The appropriations are from the general fund, or another named fund, and are available for the fiscal year indicated for each purpose. The figures "2016" and "2017" used in this article mean that the addition to the appropriations listed under them are available for the fiscal year ending June 30, 2016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal year 2017. Appropriations for fiscal year 2016 are effective the day following final enactment. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2016 new text end new text begin 2017 new text end

Sec. 2.

new text begin POLLUTION CONTROL AGENCY new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 2,620,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2016 new text end new text begin 2017 new text end
new text begin General new text end new text begin -0- new text end new text begin 1,918,000 new text end
new text begin Environmental new text end new text begin -0- new text end new text begin 702,000 new text end

new text begin Subd. 2. new text end

new text begin Water new text end

new text begin -0- new text end new text begin 1,038,000 new text end

new text begin $437,000 the second year is from the general fund and $486,000 the second year is from the environmental fund to meet the increased demand for technical assistance and review of municipal water infrastructure projects that will be generated by increased grant funding through the Public Facilities Authority. This is a onetime appropriation and is available until June 30, 2019. new text end

new text begin $115,000 the second year is for the working lands program feasibility study and program plan. This is a onetime appropriation and is available until June 30, 2018. new text end

new text begin Subd. 3. new text end

new text begin Land new text end

new text begin -0- new text end new text begin 432,000 new text end

new text begin $216,000 the second year is from the general fund and $216,000 the second year is from the environmental fund to manage contaminated sediment projects at multiple sites identified in the St. Louis River remedial action plan to restore water quality in the St. Louis River area of concern. This amount is added to the base for fiscal years 2018, 2019, and 2020 only. new text end

new text begin Subd. 4. new text end

new text begin Environmental Assistance and Cross-Media new text end

new text begin -0- new text end new text begin 1,150,000 new text end

new text begin $500,000 the second year is for SCORE block grants to counties. This amount is in addition to the amounts appropriated in Laws 2015, First Special Session chapter 4, article 3, section 2, subdivision 5. This is a onetime appropriation. new text end

new text begin $650,000 the second year is to design remedial actions and prepare bids for the Waste Disposal Engineering Landfill in the city of Andover in accordance with the closed landfill program under Minnesota Statutes, sections 115B.39 to 115B.42. This is a onetime appropriation. new text end

Sec. 3.

new text begin NATURAL RESOURCES new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin 2,269,000 new text end new text begin $ new text end new text begin 14,432,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2016 new text end new text begin 2017 new text end
new text begin General new text end new text begin 1,599,000 new text end new text begin 9,567,000 new text end
new text begin Natural Resources new text end new text begin -0- new text end new text begin 4,755,000 new text end
new text begin Game and Fish new text end new text begin 670,000 new text end new text begin 110,000 new text end

new text begin The amounts that may be spent for each purpose are specified in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Lands and Minerals Management new text end

new text begin -0- new text end new text begin 200,000 new text end

new text begin $200,000 the second year is to initiate, in consultation with the school trust lands director, a valuation process and representative valuations for the compensation of school trust lands required by Minnesota Statutes, section 84.027, subdivision 18, paragraph (b). By January 15, 2017, the commissioner must submit a report to the chairs and ranking minority members of the house of representatives and senate committees and divisions with jurisdiction over environment and natural resources and education policy and finance on the Department of Natural Resources' progress in developing a valuation process, a description of the process to identify representative sample valuations, and the results of the representative valuations of school trust lands identified for compensation. This is a onetime appropriation. new text end

new text begin Subd. 3. new text end

new text begin Ecological and Water Resources new text end

new text begin -0- new text end new text begin 612,000 new text end

new text begin $187,000 the second year is for a grant to the Middle-Snake-Tamarac Rivers Watershed District to match equal funds from the North Dakota State Water Commission and North Dakota water boards to conduct hydraulic modeling of alternative floodway options for the reach including and upstream and downstream of the Minnesota and North Dakota agricultural levies in the vicinity of Oslo, Minnesota. The modeling must include evaluating removal of floodway flow obstructions, channel obstructions, transportation access, and equalization of agricultural levy protection. The project must be conducted in partnership with the border township association group representing four Minnesota townships and the city of Oslo and the three adjacent townships in North Dakota. This is a onetime appropriation and is available until June 30, 2018. new text end

new text begin $200,000 the second year is for a grant to the Koronis Lake Association for purposes of removing and preventing aquatic invasive species. This is a onetime appropriation. new text end

new text begin $225,000 the second year is from the water management account in the natural resources fund for water appropriation monitoring, modeling, and reporting for the Cold Spring Creek area as required under this act. This is a onetime appropriation and is available until June 30, 2022. new text end

new text begin Subd. 4. new text end

new text begin Forest Management new text end

new text begin -0- new text end new text begin 3,500,000 new text end

new text begin $2,500,000 the second year is for private forest management assistance. The agency base is increased by $2,000,000 in fiscal year 2018 and thereafter. new text end

new text begin $1,000,000 the second year is from the forest management investment account in the natural resources fund for reforestation on state lands. This is a onetime appropriation. new text end

new text begin Subd. 5. new text end

new text begin Parks and Trails Management new text end

new text begin -0- new text end new text begin 6,459,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2016 new text end new text begin 2017 new text end
new text begin General new text end new text begin -0- new text end new text begin 2,929,000 new text end
new text begin Natural Resources new text end new text begin -0- new text end new text begin 3,530,000 new text end

new text begin $2,800,000 the second year is a onetime appropriation. new text end

new text begin $2,300,000 the second year is from the state parks account in the natural resources fund. Of this amount, $1,300,000 is onetime, of which $1,150,000 is for strategic park acquisition. new text end

new text begin $20,000 the second year is from the natural resources fund to design and erect signs marking the David Dill trail designated in this act. Of this amount, $10,000 is from the snowmobile trails and enforcement account and $10,000 is from the all-terrain vehicle account. This is a onetime appropriation. new text end

new text begin $100,000 the second year is for the improvement of the infrastructure for sanitary sewer service at the Woodenfrog Campground in Kabetogama State Forest. This is a onetime appropriation. new text end

new text begin $29,000 the second year is for computer programming related to the transfer-on-death title changes for watercraft. This is a onetime appropriation. new text end

new text begin $210,000 the first year is from the water recreation account in the natural resources fund for implementation of Minnesota Statutes, section 86B.532, established in this act. This is a onetime appropriation. The commissioner of natural resources shall seek federal and other nonstate funds to reimburse the department for the initial costs of producing and distributing carbon monoxide boat warning labels. All amounts collected under this paragraph shall be deposited into the water recreation account. new text end

new text begin $1,000,000 the second year is from the natural resources fund for a grant to Lake County for construction, including bridges, of the Prospectors ATV Trail System linking the communities of Ely, Babbitt, Embarrass, and Tower; Bear Head Lake and Lake Vermilion-Soudan Underground Mine State Parks; the Taconite State Trail; and the Lake County Regional ATV Trail System. Of this amount, $900,000 is from the all-terrain vehicle account, $50,000 is from the off-highway motorcycle account, and $50,000 is from the off-road vehicle account. This is a onetime appropriation. new text end

new text begin Subd. 6. new text end

new text begin Fish and Wildlife Management new text end

new text begin -0- new text end new text begin 50,000 new text end

new text begin $50,000 the second year is from the game and fish fund for fish virus surveillance, including fish testing in high-risk waters used for bait production, to ensure the availability of safe bait. This is a onetime appropriation. new text end

new text begin Subd. 7. new text end

new text begin Enforcement new text end

new text begin 670,000 new text end new text begin -0- new text end

new text begin $670,000 the first year is from the game and fish fund for aviation services. This is a onetime appropriation. new text end

new text begin Subd. 8. new text end

new text begin Operations Support new text end

new text begin 1,599,000 new text end new text begin 3,611,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2016 new text end new text begin 2017 new text end
new text begin General new text end new text begin 1,599,000 new text end new text begin 3,551,000 new text end
new text begin Game and Fish new text end new text begin -0- new text end new text begin 60,000 new text end

new text begin $1,599,000 the first year and $2,801,000 the second year are for legal costs related to the NorthMet mining project. Of this amount, up to $1,289,000 the second year may be transferred to other agencies for legal costs associated with the NorthMet mining project. This is a onetime appropriation and is available until June 30, 2019. new text end

new text begin $750,000 the second year is for a grant to Wolf Ridge Environmental Learning Center to construct a new dormitory, renovate an old dormitory, construct a maintenance building, and construct a small classroom building with parking. The grant is not available until the commissioner of management and budget determines that an amount sufficient to complete the project is available from nonstate sources. This is a onetime appropriation and is available until June 30, 2019. new text end

new text begin $60,000 the second year is from the heritage enhancement account for the department's Southeast Asian unit to conduct outreach efforts to the Southeast Asian community in Minnesota, including outreach efforts to refugees from Burma, to encourage participation in outdoor education opportunities and activities. This is a onetime appropriation. new text end

Sec. 4.

new text begin BOARD OF WATER AND SOIL RESOURCES new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 479,000 new text end

new text begin $479,000 the second year is for the development of a detailed plan to implement a working lands watershed restoration program to incentivize the establishment and maintenance of perennial crops that includes the following: new text end

new text begin (1) a process for selecting pilot watersheds that are expected to result in the greatest water quality improvements and exhibit readiness to participate in the program; new text end

new text begin (2) an assessment of the quantity of agricultural land that is expected to be eligible for the program in each watershed; new text end

new text begin (3) an assessment of landowner interest in participating in the program; new text end

new text begin (4) an assessment of the contract terms and any recommendations for changes to the terms, including consideration of variable payment rates for lands of different priority or type; new text end

new text begin (5) an assessment of the opportunity to leverage federal funds through the program and recommendations on how to maximize the use of federal funds for assistance to establish perennial crops; new text end

new text begin (6) an assessment of how other state programs could complement the program; new text end

new text begin (7) an estimate of water quality improvements expected to result from implementation in pilot watersheds; new text end

new text begin (8) an assessment of how to best integrate program implementation with existing conservation requirements and develop recommendations on harvest practices and timing to benefit wildlife production; new text end

new text begin (9) an assessment of the potential viability and water quality benefit of cover crops used in biomass processing facilities; new text end

new text begin (10) a timeline for implementation, coordinated to the extent possible with proposed biomass processing facilities; and new text end

new text begin (11) a projection of funding sources needed to complete implementation. new text end

new text begin This is a onetime appropriation and is available until June 30, 2018. new text end

new text begin The board shall coordinate development of the working lands watershed restoration plan with stakeholders and the commissioners of natural resources, agriculture, and the Pollution Control Agency. The board must submit an interim report by October 15, 2017, and the feasibility study and program plan by February 1, 2018, to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over agriculture, natural resources, and environment policy and finance and to the Clean Water Council. new text end

Sec. 5.

new text begin LEGISLATURE new text end

new text begin $ new text end new text begin 25,000 new text end new text begin $ new text end new text begin -0- new text end

new text begin $25,000 the first year is from the Minnesota future resources fund to the Legislative Coordinating Commission for the Aggregate Resources Task Force established in this act. This is a onetime appropriation and is available until June 30, 2018. new text end

Sec. 6.

new text begin ADMINISTRATION new text end

new text begin $ new text end new text begin 250,000 new text end new text begin $ new text end new text begin -0- new text end

new text begin $250,000 the first year is from the state forest suspense account in the permanent school fund for the school trust lands director to initiate real estate development projects on school trust lands as determined by the school trust lands director. This is a onetime appropriation. new text end

Sec. 7.

Minnesota Statutes 2014, section 17.4982, subdivision 18a, is amended to read:

Subd. 18a.

Nonindigenous species.

"Nonindigenous species" means a species of fish or other aquatic life that is:

(1) not known to have been historically present in the state;

(2) not known to be naturally occurring in a particular part of the state; or

(3) deleted text begin listeddeleted text end new text begin designatednew text end by rule as a prohibited or regulated invasive species.

Sec. 8.

Minnesota Statutes 2014, section 84.027, subdivision 13, is amended to read:

Subd. 13.

Game and fish rules.

(a) The commissioner of natural resources may adopt rules under sections 97A.0451 to 97A.0459 and this subdivision that are authorized under:

(1) chapters 97A, 97B, and 97C to set open seasons and areas, to close seasons and areas, to select hunters for areas, to provide for tagging and registration of game and fish, to prohibit or allow taking of wild animals to protect a species, to prevent or control wildlife disease, to open or close bodies of water or portions of bodies of water for night bow fishing, and to prohibit or allow importation, transportation, or possession of a wild animal;

(2) sections 84.093, 84.15, and 84.152 to set seasons for harvesting wild ginseng roots and wild rice and to restrict or prohibit harvesting in designated areas; and

(3) section 84D.12 to deleted text begin listdeleted text end new text begin designatenew text end prohibited invasive species, regulated invasive species, new text begin and new text end unregulated nonnative speciesdeleted text begin ,deleted text end and new text begin to list new text end infested waters.

(b) If conditions exist that do not allow the commissioner to comply with sections 97A.0451 to 97A.0459, including the need to adjust season variables on an annual basis based upon current biological and harvest data, the commissioner may adopt a rule under this subdivision by submitting the rule to the attorney general for review under section 97A.0455, publishing a notice in the State Register and filing the rule with the secretary of state and the Legislative Coordinating Commission, and complying with section 97A.0459, and including a statement of the conditions and a copy of the rule in the notice. The conditions for opening a water body or portion of a water body for night bow fishing under this section may include the need to temporarily open the area to evaluate compatibility of the activity on that body of water prior to permanent rulemaking. The notice may be published after it is received from the attorney general or five business days after it is submitted to the attorney general, whichever is earlier.

(c) Rules adopted under paragraph (b) are effective upon publishing in the State Register and may be effective up to seven days before publishing and filing under paragraph (b), if:

(1) the commissioner of natural resources determines that an emergency exists;

(2) the attorney general approves the rule; and

(3) for a rule that affects more than three counties the commissioner publishes the rule once in a legal newspaper published in Minneapolis, St. Paul, and Duluth, or for a rule that affects three or fewer counties the commissioner publishes the rule once in a legal newspaper in each of the affected counties.

(d) Except as provided in paragraph (e), a rule published under paragraph (c), clause (3), may not be effective earlier than seven days after publication.

(e) A rule published under paragraph (c), clause (3), may be effective the day the rule is published if the commissioner gives notice and holds a public hearing on the rule within 15 days before publication.

(f) The commissioner shall attempt to notify persons or groups of persons affected by rules adopted under paragraphs (b) and (c) by public announcements, posting, and other appropriate means as determined by the commissioner.

(g) Notwithstanding section 97A.0458, a rule adopted under this subdivision is effective for the period stated in the notice but not longer than 18 months after the rule is effective.

Sec. 9.

Minnesota Statutes 2015 Supplement, section 84.027, subdivision 13a, is amended to read:

Subd. 13a.

Game and fish expedited permanent rules.

(a) In addition to the authority granted in subdivision 13, the commissioner of natural resources may adopt rules under section 14.389 that are authorized under:

(1) chapters 97A, 97B, and 97C to describe zone or permit area boundaries, to designate fish spawning beds or fish preserves, to select hunters or anglers for areas, to provide for registration of game or fish, to prevent or control wildlife disease, or to correct errors or omissions in rules that do not have a substantive effect on the intent or application of the original rule; or

(2) section 84D.12 to deleted text begin listdeleted text end new text begin designatenew text end prohibited invasive species, regulated invasive species, and unregulated nonnative species.

(b) The commissioner of natural resources may adopt rules under section 14.389 that are authorized under chapters 97A, 97B, and 97C, for purposes in addition to those listed in paragraph (a), clause (1), subject to the notice and public hearing provisions of section 14.389, subdivision 5.

Sec. 10.

Minnesota Statutes 2014, section 84.091, subdivision 2, is amended to read:

Subd. 2.

License required; deleted text begin exceptiondeleted text end new text begin exemptionsnew text end .

(a) Except as provided in deleted text begin paragraph (b)deleted text end new text begin this subdivisionnew text end , a person may not harvest, buy, sell, transport, or possess aquatic plants without a license required under this chapter. A license shall be issued in the same manner as provided under the game and fish laws.

(b) A resident under the age of 18 years may harvest wild rice without a license, if accompanied by a person with a wild rice license.

new text begin (c) Tribal band members who possess a valid tribal identification card from a federally recognized tribe located in Minnesota are deemed to have a license to harvest wild rice under this section. new text end

Sec. 11.

Minnesota Statutes 2014, section 84.798, subdivision 2, is amended to read:

Subd. 2.

Exemptions.

Registration is not required for an off-road vehicle that is:

(1) owned and used by the United States, an Indian tribal government, the state, another state, or a political subdivision; deleted text begin ordeleted text end

(2) registered in another state or country and has not been in this state for more than 30 consecutive daysnew text begin ; ornew text end

new text begin (3) operated with a valid state trail pass according to section 84.8035new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2017. new text end

Sec. 12.

Minnesota Statutes 2014, section 84.8035, is amended to read:

84.8035 deleted text begin NONRESIDENTdeleted text end OFF-ROAD VEHICLE STATE TRAIL PASS.

Subdivision 1.

Pass required; fee.

(a) new text begin Except as provided under paragraph (c), new text end a deleted text begin nonresidentdeleted text end new text begin personnew text end may not operate an off-road vehicle on a state or grant-in-aid off-road vehicle trail new text begin or use area new text end unless the vehicle displays deleted text begin a nonresidentdeleted text end new text begin annew text end off-road vehicle state trail pass sticker issued according to this section. The pass must be viewable by a peace officer, a conservation officer, or an employee designated under section 84.0835.

(b) deleted text begin The fee for an annual pass is $20. The pass is valid from January 1 through December 31. The fee for a three-year pass is $30.deleted text end The commissioner of natural resources shall issue a pass upon application and payment of the fee. Fees collected under this section, except for the issuing fee for licensing agents, shall be deposited in the state treasury and credited to the off-road vehicle account in the natural resources fund and, except for the electronic licensing system commission established by the commissioner under section 84.027, subdivision 15, must be used for grants-in-aid to counties and municipalities for off-road vehicle organizations to construct and maintain off-road vehicle trails and use areas.

(c) deleted text begin A nonresidentdeleted text end new text begin Annew text end off-road vehicle state trail pass is not required for:

(1) an off-road vehicle that is owned and used by the United States, another state, or a political subdivision thereof that is exempt from registration under section 84.798, subdivision 2;

(2) a person operating an off-road vehicle only on the portion of a trail that is owned by the person or the person's spouse, child, or parent; or

(3) a deleted text begin nonresidentdeleted text end new text begin personnew text end operating an off-road vehicle that is registered according to section 84.798.

new text begin (d) The fee for an annual nonresident off-road vehicle state trail pass is $20. The nonresident pass is valid from January 1 through December 31. The fee for a nonresident three-year pass is $30. new text end

new text begin (e) The fee for a resident off-road vehicle state trail pass is $20. The resident pass is valid for 30 consecutive days after the date of issuance. new text end

Subd. 2.

License agents.

The commissioner may appoint agents to issue and sell deleted text begin nonresidentdeleted text end off-road vehicle state trail passes. The commissioner may revoke the appointment of an agent at any time. The commissioner may adopt additional rules as provided in section 97A.485, subdivision 11. An agent shall observe all rules adopted by the commissioner for accounting and handling of passes pursuant to section 97A.485, subdivision 11. An agent shall promptly deposit and remit all money received from the sale of the passes, exclusive of the issuing fee, to the commissioner.

Subd. 3.

Issuance of passes.

The commissioner and agents shall issue and sell deleted text begin nonresidentdeleted text end off-road vehicle state trail passes. The commissioner shall also make the passes available through the electronic licensing system established under section 84.027, subdivision 15.

Subd. 4.

Agent's fee.

In addition to the fee for a pass, an issuing fee of $1 per pass shall be charged. The issuing fee may be retained by the seller of the pass. Issuing fees for passes issued by the commissioner shall be deposited in the off-road vehicle account in the natural resources fund and retained for the operation of the electronic licensing system.

Subd. 5.

Duplicate passes.

The commissioner and agents shall issue a duplicate pass to persons whose pass is lost or destroyed using the process established under section 97A.405, subdivision 3, and rules adopted thereunder. The fee for a duplicate deleted text begin nonresidentdeleted text end off-road vehicle state trail pass is $4, with an issuing fee of 50 cents.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2017. new text end

Sec. 13.

Minnesota Statutes 2014, section 84D.01, subdivision 2, is amended to read:

Subd. 2.

Aquatic macrophyte.

"Aquatic macrophyte" means new text begin macro algae ornew text end a macroscopic nonwoody plant, either a submerged, floating leafed, floating, or emergent plant that naturally grows in water.

Sec. 14.

Minnesota Statutes 2014, section 84D.05, subdivision 1, is amended to read:

Subdivision 1.

Prohibited activities.

A person may not possess, import, purchase, sell, propagate, transport, or introduce a prohibited invasive species, except:

(1) under a permit issued by the commissioner under section 84D.11;

(2) in the case of purple loosestrife, as provided by sections 18.75 to 18.88;

(3) under a restricted species permit issued under section 17.457;

(4) when being transported to the department, or another destination as the commissioner may direct, in a sealed container for purposes of identifying the species or reporting the presence of the species;

(5) when being transported for disposal as part of a harvest or control activity when specifically authorized under a permit issued by the commissioner according to section 103G.615, when being transported for disposal as specified under a commercial fishing license issued by the commissioner according to section 97A.418, 97C.801, 97C.811, 97C.825, 97C.831, or 97C.835, or when being transported as specified by the commissioner;

deleted text begin (6) when the specimen has been lawfully acquired dead and, in the case of plant species, all seeds are removed or are otherwise secured in a sealed container; deleted text end

deleted text begin (7) in the form of herbaria or other preserved specimens; deleted text end

deleted text begin (8)deleted text end new text begin (6)new text end when being removed from watercraft and equipment, or caught while angling, and immediately returned to the water from which they came; or

deleted text begin (9)deleted text end new text begin (7)new text end as the commissioner may otherwise prescribe by rule.

Sec. 15.

new text begin [84D.075] NONNATIVE SPECIES, AQUATIC PLANTS, AND AQUATIC MACROPHYTES; PARTS AND LIFE STAGE. new text end

new text begin A law relating to a nonnative species, aquatic plant, or aquatic macrophyte applies in the same manner to a part of a nonnative species, aquatic plant, or aquatic macrophyte, whether alive or dead, and to any life stage or form. new text end

Sec. 16.

Minnesota Statutes 2014, section 84D.09, subdivision 2, is amended to read:

Subd. 2.

Exceptions.

Unless otherwise prohibited by law, a person may transport aquatic macrophytes:

(1) that are duckweeds in the family Lemnaceae;

(2) for purposes of constructing shooting or observation blinds in amounts sufficient for that purpose, provided that the aquatic macrophytes are emergent and cut above the waterline;

(3) when legally purchased or traded by or from commercial or hobbyist sources for aquarium, wetland or lakeshore restoration, or ornamental purposes;

(4) when harvested for personal or commercial use if in a motor vehicle;

(5) to the department, or another destination as the commissioner may direct, in a sealed container for purposes of identifying a species or reporting the presence of a species;

(6) that are wild rice harvested under section 84.091;

(7) in the form of fragments of emergent aquatic macrophytes incidentally transported in or on watercraft or decoys used for waterfowl hunting during the waterfowl season; deleted text begin ordeleted text end

(8) when removing water-related equipment from waters of the state for purposes of cleaning off aquatic macrophytes before leaving a water access sitedeleted text begin .deleted text end new text begin ; ornew text end

new text begin (9) when being transported from riparian property to a legal disposal site that is at least 100 feet from any surface water, ditch, or seasonally flooded land, provided the aquatic macrophytes are in a covered commercial vehicle specifically designed and used for hauling trash. new text end

Sec. 17.

Minnesota Statutes 2014, section 84D.10, subdivision 4, is amended to read:

Subd. 4.

Persons transporting water-related equipment.

(a) When leaving deleted text begin watersdeleted text end new text begin a waternew text end of the statenew text begin ,new text end a person must drain water-related equipment holding water and live wells and bilges by removing the drain plug before transporting the water-related equipment deleted text begin off the water access site or riparian propertydeleted text end .new text begin For the purposes of this paragraph, "transporting" includes moving water-related equipment over land between connected or unconnected water bodies, but does not include moving water-related equipment within the immediate area required for loading and preparing the water-related equipment for transport over land.new text end

(b) Drain plugs, bailers, valves, or other devices used to control the draining of water from ballast tanks, bilges, and live wells must be removed or opened while transporting water-related equipment.

(c) Emergency response vehicles and equipment may be transported on a public road with the drain plug or other similar device replaced only after all water has been drained from the equipment upon leaving the water body.

(d) Portable bait containers used by licensed aquatic farms, portable bait containers when fishing through the ice except on waters listed infested for viral hemorrhagic septicemia, and marine sanitary systems are exempt from this subdivision.

(e) A person must not dispose of bait in waters of the state.

(f) A boat lift, dock, swim raft, or associated equipment that has been removed from any water body may not be placed in another water body until a minimum of 21 days have passed.

(g) A person who transports water that is appropriated from noninfested surface water bodies and that is transported by a commercial vehicle, excluding watercraft, or commercial trailer, which vehicle or trailer is specifically designed and used for water hauling, is exempt from paragraphs (a) and (b), provided that the person does not discharge the transported water to other surface waters or within 100 feet of a surface water body.

(h) A person transporting water from noninfested surface water bodies for firefighting or emergencies that threaten human safety or property is exempt from paragraphs (a) and (b).

Sec. 18.

Minnesota Statutes 2014, section 84D.108, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Lake Minnetonka pilot study. new text end

new text begin (a) The commissioner may issue an additional permit to service providers to return to Lake Minnetonka water-related equipment with zebra mussels attached after the equipment has been seasonally stored, serviced, or repaired. The permit must include verification and documentation requirements and any other conditions the commissioner deems necessary. new text end

new text begin (b) Water-related equipment with zebra mussels attached may be returned only to Lake Minnetonka (DNR Division of Waters number 27-0133) by service providers permitted under subdivision 1. new text end

new text begin (c) The service provider's place of business must be within the Lake Minnetonka Conservation District as established according to sections 103B.601 to 103B.645. new text end

new text begin (d) A service provider applying for a permit under this subdivision must, if approved for a permit and before the permit is valid, furnish a corporate surety bond in favor of the state for $50,000 payable upon violation of this chapter. new text end

new text begin (e) This subdivision expires December 1, 2018. new text end

Sec. 19.

Minnesota Statutes 2015 Supplement, section 84D.11, subdivision 1, is amended to read:

Subdivision 1.

Prohibited invasive species.

new text begin (a) new text end The commissioner may issue a permit for the propagation, possession, importation, purchase, or transport of a prohibited invasive species for the purposes of disposal, decontamination, control, research, or education.

new text begin (b) The commissioner may issue a permit as provided under section 84D.108, subdivision 2a, to a service provider to allow water-related equipment to be placed back into the same body of water after being seasonally stored, serviced, or repaired by the service provider. This paragraph expires December 1, 2018. new text end

Sec. 20.

Minnesota Statutes 2014, section 84D.13, subdivision 4, is amended to read:

Subd. 4.

Warnings; civil citations.

After appropriate training, conservation officers, other licensed peace officers, and other department personnel designated by the commissioner may issue warnings or citations to a person who:

(1) unlawfully transports prohibited invasive species or aquatic macrophytes;

(2) unlawfully places or attempts to place into waters of the state water-related equipment that has aquatic macrophytes or prohibited invasive species attached;

(3) intentionally damages, moves, removes, or sinks a buoy marking, as prescribed by rule, Eurasian watermilfoil;

(4) fails to remove plugs, open valves, and drain water from water-related equipment before leaving waters of the state or when transporting water-related equipment as provided in section 84D.10, subdivision 4; deleted text begin ordeleted text end

(5) transports infested water, in violation of rule, off riparian propertydeleted text begin .deleted text end new text begin ;new text end

new text begin (6) fails to comply with a decontamination order when a decontamination unit is available on site; new text end

new text begin (7) fails to complete decontamination of water-related equipment or to remove invasive species from water-related equipment by the date specified on a tagging notice and order; or new text end

new text begin (8) fails to complete the aquatic invasive species offender training course required under section 86B.13. new text end

Sec. 21.

Minnesota Statutes 2015 Supplement, section 84D.13, subdivision 5, is amended to read:

Subd. 5.

Civil penalties.

(a) A civil citation issued under this section must impose the following penalty amounts:

(1) for transporting aquatic macrophytes in violation of section 84D.09, $100;

(2) for placing or attempting to place into waters of the state water-related equipment that has aquatic macrophytes attached, $200;

(3) for unlawfully possessing or transporting a prohibited invasive species other than an aquatic macrophyte, $500;

(4) for placing or attempting to place into waters of the state water-related equipment that has prohibited invasive species attached when the waters are not listed by the commissioner as being infested with that invasive species, $500;

(5) for intentionally damaging, moving, removing, or sinking a buoy marking, as prescribed by rule, Eurasian watermilfoil, $100;

(6) for failing to have drain plugs or similar devices removed or opened while transporting water-related equipment or for failing to remove plugs, open valves, and drain water from water-related equipment, other than marine sanitary systems, before leaving waters of the state, $100;

(7) for transporting infested water off riparian property without a permit as required by rule, $200; deleted text begin anddeleted text end

(8) for failing to have aquatic invasive species affirmation displayed or available for inspection as provided in sections 86B.401 and 97C.301, subdivision 2a, $25deleted text begin .deleted text end new text begin ;new text end

new text begin (9) for failing to comply with a decontamination order when a decontamination unit is available on site, $250; new text end

new text begin (10) for failing to complete decontamination of water-related equipment or to remove invasive species from water-related equipment by the date specified on a tagging notice and order, $250; and new text end

new text begin (11) for failing to complete the aquatic invasive species offender training course required under section 86B.13, $25. new text end

(b) A civil citation that is issued to a person who has one or more prior convictions or final orders for violations of this chapter is subject to twice the penalty amounts listed in paragraph (a).

Sec. 22.

Minnesota Statutes 2014, section 85.015, subdivision 13, is amended to read:

Subd. 13.

Arrowhead Region Trails, Cook, Lake, St. Louis, Pine, Carlton, Koochiching, and Itasca Counties.

(a)(1) The Taconite Trail shall originate at Ely in St. Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in Itasca County and there terminate;

(2) the C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand Marais in Cook County, thence northeasterly to the international boundary in the vicinity of the north shore of Lake Superior, and there terminate;

(3) deleted text begin The Grand Marais to International Falls Trail shall originate in Grand Marais in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area, to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St. Louis County to International Falls in Koochiching County, and there terminatedeleted text end new text begin the David Dill/Arrowhead Trail shall originate at International Falls in Koochiching County and extend southeasterly through the Pelican Lake area in St. Louis County, intersecting with the Taconite Trail west of Tower; then the David Dill/Taconite Trail continues easterly to Ely in St. Louis County; then the David Dill/Tomahawk Trail extends southeasterly, outside the Boundary Waters Canoe Area, to the area of Little Marais in Lake County and there terminates at the intersection with the C. J. Ramstad/Northshore Trailnew text end ;new text begin andnew text end

(4) the Matthew Lourey Trail shall originate in Duluth in St. Louis County and extend southerly to Chengwatana State Forest in Pine County.

(b) The trails shall be developed primarily for riding and hiking.

(c) In addition to the authority granted in subdivision 1, lands and interests in lands for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring any land or interest in land by eminent domain the commissioner of administration shall obtain the approval of the governor. The governor shall consult with the Legislative Advisory Commission before granting approval. Recommendations of the Legislative Advisory Commission shall be advisory only. Failure or refusal of the commission to make a recommendation shall be deemed a negative recommendation.

Sec. 23.

Minnesota Statutes 2014, section 86B.005, is amended by adding a subdivision to read:

new text begin Subd. 4a. new text end

new text begin Enclosed accommodation compartment. new text end

new text begin "Enclosed accommodation compartment" means one contiguous space, surrounded by boat structure that contains all of the following: new text end

new text begin (1) designated sleeping accommodations; new text end

new text begin (2) a galley area with sink; and new text end

new text begin (3) a head compartment. new text end

Sec. 24.

Minnesota Statutes 2014, section 86B.005, is amended by adding a subdivision to read:

new text begin Subd. 4b. new text end

new text begin Enclosed occupancy compartment. new text end

new text begin "Enclosed occupancy compartment" means one contiguous enclosed space surrounded by boat structure that may be occupied by a person. new text end

Sec. 25.

Minnesota Statutes 2014, section 86B.005, is amended by adding a subdivision to read:

new text begin Subd. 8a. new text end

new text begin Marine carbon monoxide detection system. new text end

new text begin "Marine carbon monoxide detection system" means a device or system that meets the requirements of the American Boat and Yacht Council Standard A-24, July, 2015, for carbon monoxide detection systems. new text end

Sec. 26.

new text begin [86B.532] CARBON MONOXIDE DETECTION DEVICE REQUIREMENTS. new text end

new text begin Subdivision 1. new text end

new text begin Requirements. new text end

new text begin (a) No motorboat that has an enclosed accommodation compartment may be operated on any waters of the state unless the motorboat is equipped with a functioning marine carbon monoxide detection system installed according to the manufacturer's instructions. new text end

new text begin (b) After the effective date of this section, no new motorboat that has an enclosed accommodation compartment may be sold or offered for sale in Minnesota unless the motorboat is equipped with a new functioning marine carbon monoxide detection system installed according to the manufacturer's instructions. new text end

new text begin Subd. 2. new text end

new text begin Boating safety courses. new text end

new text begin All state-sponsored boating safety courses and all boating safety courses that require state approval by the commissioner must incorporate information about the dangers of being overcome by carbon monoxide poisoning while on or behind a motorboat and how to prevent that poisoning. new text end

new text begin Subd. 3. new text end

new text begin Carbon monoxide poisoning warning labels. new text end

new text begin (a) No gasoline-powered motorboat that has an enclosed occupancy compartment may be operated on any waters of the state unless labels warning of carbon monoxide dangers are affixed in the vicinity of: the aft reboarding/stern area, the steering station, and in or at the entrance to any enclosed occupancy compartment. new text end

new text begin (b) For a motorboat sold by a dealer, the dealer must ensure that specified warning labels have been affixed before completion of the transaction. new text end

new text begin (c) Warning labels approved by the American Boat and Yacht Council, National Marine Manufacturers Association, or the commissioner satisfy the requirements of this section when installed as specified. new text end

new text begin Subd. 4. new text end

new text begin License agents; distribution. new text end

new text begin The commissioner shall mail the information and labels to all owners of motorboats that are 19 feet and greater in length the first year. The commissioner must also provide license agents with informational brochures and warning labels about the dangers of carbon monoxide poisoning while boating. A license agent must make the brochure and labels available to motorboat owners and make efforts to inform new owners of the requirement. The commissioner shall highlight the new requirements on the watercraft renewal reminder postcard for three consecutive three-year license cycles and in the Minnesota Boating Guide. The brochure must instruct motorboat owners to place the labels according to subdivision 3, and inform motorboat owners of carbon monoxide dangers of gasoline-powered generators. new text end

new text begin Subd. 5. new text end

new text begin Safety warning. new text end

new text begin A first violation of this section shall not result in a penalty, but is punishable only by a safety warning. A second or subsequent violation is a petty misdemeanor. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective May 1, 2017. new text end

Sec. 27.

new text begin [86B.841] TRANSFER-ON-DEATH TITLE TO WATERCRAFT. new text end

new text begin Subdivision 1. new text end

new text begin Titled as transfer-on-death. new text end

new text begin A natural person who is the owner of a watercraft may have the watercraft titled in transfer-on-death or TOD form by including in the application for the certificate of title a designation of a beneficiary or beneficiaries to whom the watercraft must be transferred on death of the owner or the last survivor of joint owners with rights of survivorship, subject to the rights of secured parties. new text end

new text begin Subd. 2. new text end

new text begin Designation of beneficiary. new text end

new text begin A watercraft is registered in transfer-on-death form by designating on the certificate of title the name of the owner and the names of joint owners with identification of rights of survivorship, followed by the words "transfer-on-death to (name of beneficiary or beneficiaries)." The designation "TOD" may be used instead of "transfer-on-death." A title in transfer-on-death form is not required to be supported by consideration, and the certificate of title in which the designation is made is not required to be delivered to the beneficiary or beneficiaries in order for the designation to be effective. new text end

new text begin Subd. 3. new text end

new text begin Interest of beneficiary. new text end

new text begin The transfer-on-death beneficiary or beneficiaries have no interest in the watercraft until the death of the owner or the last survivor of joint owners with rights of survivorship. A beneficiary designation may be changed at any time by the owner or by all joint owners with rights of survivorship, without the consent of the beneficiary or beneficiaries, by filing an application for a new certificate of title. new text end

new text begin Subd. 4. new text end

new text begin Vesting of ownership in beneficiary. new text end

new text begin Ownership of a watercraft titled in transfer-on-death form vests in the designated beneficiary or beneficiaries on the death of the owner or the last of the joint owners with rights of survivorship, subject to the rights of secured parties. The transfer-on-death beneficiary or beneficiaries who survive the owner may apply for a new certificate of title to the watercraft upon submitting a certified death record of the owner of the watercraft. If no transfer-on-death beneficiary or beneficiaries survive the owner of a watercraft, the watercraft must be included in the probate estate of the deceased owner. A transfer of a watercraft to a transfer-on-death beneficiary or beneficiaries is not a testamentary transfer. new text end

new text begin Subd. 5. new text end

new text begin Rights of creditors. new text end

new text begin (a) This section does not limit the rights of any secured party or creditor of the owner of a watercraft against a transfer-on-death beneficiary or beneficiaries. new text end

new text begin (b) The state or a county agency with a claim or lien authorized by section 246.53, 256B.15, 261.04, or 270C.63, is a creditor for purposes of this subdivision. A claim or lien under those sections continues to apply against the designated beneficiary or beneficiaries after the transfer under this section if other assets of the deceased owner's estate are insufficient to pay the amount of the claim. The claim or lien continues to apply to the watercraft until the designated beneficiary sells or transfers it to a person against whom the claim or lien does not apply and who did not have actual notice or knowledge of the claim or lien. new text end

Sec. 28.

Minnesota Statutes 2014, section 88.01, is amended by adding a subdivision to read:

new text begin Subd. 28. new text end

new text begin Prescribed burn. new text end

new text begin "Prescribed burn" means a fire that is intentionally ignited, managed, and controlled by an entity meeting certification requirements established by the commissioner for the purpose of managing vegetation. A prescribed burn that has exceeded its prescribed boundaries and requires suppression action is considered a wildfire. new text end

Sec. 29.

Minnesota Statutes 2014, section 88.22, subdivision 1, is amended to read:

Subdivision 1.

Imposition of restrictions.

(a) Road closure. When the commissioner of natural resources shall determine that conditions conducive to wildfire hazards exist in the wildfire areas of the state and that the presence of persons in the wildlife areas tends to aggravate wildfire hazards, render forest trails impassable by driving thereon during wet seasons and hampers the effective enforcement of state timber trespass and game laws, the commissioner may by written order, close any road or trail leading into any land used for any conservation purposes, to all modes of travel except that considered essential such as residents traveling to and from their homes or in other cases to be determined by the authorized forest officers assigned to guard the area.

(b) Burning ban. The commissioner may also, upon such determination, by written order, suspend the issuance of permits for open firesnew text begin or prescribed burnsnew text end , revoke or suspend the operation of a permit previously issued and, to the extent the commissioner deems necessary, prohibit the building of all or some kinds of open fires new text begin or prescribed burns new text end in all or any part of a wildfire area regardless of whether a permit is otherwise required; and the commissioner also may, by written order, prohibit smoking except at places of habitation or automobiles or other enclosed vehicles properly equipped with an efficient ash tray.

Sec. 30.

Minnesota Statutes 2014, section 89.0385, is amended to read:

89.0385 FOREST MANAGEMENT INVESTMENT ACCOUNT; COST CERTIFICATION.

(a) The commissioner shall certify the total costs incurred for forest management, forest improvement, and road improvement on state-managed lands during each fiscal year. The commissioner shall distribute forest management receipts credited to various accounts according to this section.

(b) The amount of the certified costs incurred for forest management activities on state lands shall be transferred from the account where receipts are deposited to the forest management investment account in the natural resources fund, except for those costs certified under section 16A.125. Transfers may occur quarterly, based on quarterly cost and revenue reports, throughout the fiscal year, with final certification and reconciliation after each fiscal year. Transfers in a fiscal year cannot exceed receipts credited to the account.

new text begin (c) The amount of the certified costs incurred for forest management activities on nonstate lands managed under a good neighbor or joint powers agreement must be transferred from the account where receipts are deposited to the forest management investment account in the natural resources fund. Transfers for costs incurred may occur after projects or timber permits are finalized. new text end

Sec. 31.

Minnesota Statutes 2014, section 93.0015, subdivision 3, is amended to read:

Subd. 3.

Expiration.

The committee expires June 30, deleted text begin 2016deleted text end new text begin 2026new text end .

Sec. 32.

Minnesota Statutes 2014, section 93.2236, is amended to read:

93.2236 MINERALS MANAGEMENT ACCOUNT.

(a) The minerals management account is created as an account in the natural resources fund. Interest earned on money in the account accrues to the account. Money in the account may be spent or distributed only as provided in paragraphs (b) and (c).

(b) If the balance in the minerals management account exceeds $3,000,000 on new text begin March 31, new text end June 30, new text begin September 30, or December 31, new text end the amount exceeding $3,000,000 must be distributed to the permanent school fund, the permanent university fund, and taxing districts as provided in section 93.22, subdivision 1, paragraph (c). The amount distributed to each fund must be in the same proportion as the total mineral lease revenue received in the previous biennium from school trust lands, university lands, and lands held by the state in trust for taxing districts.

(c) Subject to appropriation by the legislature, money in the minerals management account may be spent by the commissioner of natural resources for mineral resource management and projects to enhance future mineral income and promote new mineral resource opportunities.

Sec. 33.

Minnesota Statutes 2014, section 94.3495, subdivision 2, is amended to read:

Subd. 2.

Classes of land; definitions.

new text begin (a) new text end The classes of public land that may be involved in an expedited exchange under this section are:

(1) Class 1 land, which for the purpose of this section is Class A land as defined in section 94.342, subdivision 1deleted text begin , except for:deleted text end new text begin ;new text end

deleted text begin (i) school trust land as defined in section 92.025; and deleted text end

deleted text begin (ii) university land granted to the state by acts of Congress; deleted text end

(2) Class 2 land, which for the purpose of this section is Class B land as defined in section 94.342, subdivision 2; and

(3) Class 3 land, which for the purpose of this section is all land owned in fee by a governmental subdivision of the state.

new text begin (b) "School trust land" has the meaning given in section 92.025. new text end

new text begin (c) "University land" means land granted to the state by acts of Congress for university purposes. new text end

Sec. 34.

Minnesota Statutes 2014, section 94.3495, subdivision 3, is amended to read:

Subd. 3.

Valuation of land.

(a) In an exchange of Class 1 land for Class 2 or 3 land, the value of all the land shall be determined by the commissioner of natural resourcesnew text begin , but the county board must approve the value determined for the Class 2 land, and the governmental subdivision of the state must approve the value determined for the Class 3 landnew text end . In an exchange of Class 2 land for Class 3 land, the value of all the land shall be determined by the county board of the county in which the land liesnew text begin , but the governmental subdivision of the state must approve the value determined for the Class 3 landnew text end .

new text begin (b)new text end To determine the value of the land, the parties to the exchange may new text begin either (1) new text end cause the land to be appraised, deleted text begin utilize the valuation process provided under section 84.0272, subdivision 3, or obtain a market analysis from a qualified real estate brokerdeleted text end new text begin or (2) determine the value for each 40-acre tract or lot, or a portion thereof, using the most current township or county assessment schedules for similar land types from the county assessor of the county in which the lands are locatednew text end . Merchantable timber value deleted text begin mustdeleted text end new text begin shouldnew text end be deleted text begin determined anddeleted text end considered in finalizing valuation of the lands.

deleted text begin (b) Alldeleted text end new text begin (c) Except for school trust lands and university lands, thenew text end lands exchanged under this section shall be exchanged only for lands of at least substantially equal value. For the purposes of this subdivision, "substantially equal value" has the meaning given under section 94.343, subdivision 3, paragraph (b). No payment is due either party if the landsnew text begin , other than school trust lands or university lands, new text end are of substantially equal value but are not of the same value.

new text begin (d) School trust lands and university lands exchanged under this section must be exchanged only for lands of equal or greater value. new text end

Sec. 35.

Minnesota Statutes 2014, section 94.3495, subdivision 7, is amended to read:

Subd. 7.

deleted text begin Reversionary interest;deleted text end Mineral and water power rights and other reservations.

deleted text begin (a) All deeds conveying land given in an expedited land exchange under this section shall include a reverter that provides that title to the land automatically reverts to the conveying governmental unit if: deleted text end

deleted text begin (1) the receiving governmental unit sells, exchanges, or otherwise transfers title of the land within 40 years of the date of the deed conveying ownership; and deleted text end

deleted text begin (2) there is no prior written approval for the transfer from the conveying governmental unit. The authority for granting approval is the commissioner of natural resources for former Class 1 land, the county board for former Class 2 land, and the governing body for former Class 3 land. deleted text end

deleted text begin (b)deleted text end Class 1 land given in exchange is subject to the reservation provisions of section 94.343, subdivision 4. Class 2 land given in exchange is subject to the reservation provisions of section 94.344, subdivision 4. County fee land given in exchange is subject to the reservation provisions of section 373.01, subdivision 1, paragraph (g).

Sec. 36.

Minnesota Statutes 2014, section 97A.075, subdivision 7, is amended to read:

Subd. 7.

Wolf licenses; account established.

(a) For purposes of this subdivision, "wolf license" means a license or permit issued under section 97A.475, subdivision 2, clause (20); 3, paragraph (a), clause (16); or 20, paragraph (b).

(b) A wolf management and monitoring account is created in the game and fish fund. Revenue from wolf licenses must be credited to the wolf management and monitoring account and is appropriated to the commissioner only for wolf management, research, damage control, enforcement, and education.new text begin Notwithstanding any other law to the contrary, money credited to the account may not be used to pay indirect costs or agency shared services.new text end

Sec. 37.

Minnesota Statutes 2014, section 97A.405, subdivision 2, is amended to read:

Subd. 2.

Personal possession.

(a) A person acting under a license or traveling from an area where a licensed activity was performed must have in personal possession either: (1) the proper license, if the license has been issued to and received by the person; new text begin (2) a driver's license or Minnesota identification card that bears a valid designation of the proper lifetime license, as provided under section 171.07, subdivision 19; new text end or deleted text begin (2)deleted text end new text begin (3)new text end the proper license identification number or stamp validation, if the license has been sold to the person by electronic means but the actual license has not been issued and received.

(b) If possession of a license or a license identification number is required, a person must exhibit, as requested by a conservation officer or peace officer, either: (1) the proper license if the license has been issued to and received by the person; new text begin (2) a driver's license or Minnesota identification card that bears a valid designation of the proper lifetime license, as provided under section 171.07, subdivision 19; new text end or deleted text begin (2)deleted text end new text begin (3)new text end the proper license identification number or stamp validation and a valid state driver's license, state identification card, or other form of identification provided by the commissioner, if the license has been sold to the person by electronic means but the actual license has not been issued and received. A person charged with violating the license possession requirement shall not be convicted if the person produces in court or the office of the arresting officer, the actual license previously issued to that person, which was valid at the time of arrest, or satisfactory proof that at the time of the arrest the person was validly licensed. Upon request of a conservation officer or peace officer, a licensee shall write the licensee's name in the presence of the officer to determine the identity of the licensee.

(c) new text begin Except as provided in paragraph (a), clause (2), new text end if the actual license has been issued and received, a receipt for license fees, a copy of a license, or evidence showing the issuance of a license, including the license identification number or stamp validation, does not entitle a licensee to exercise the rights or privileges conferred by a license.

(d) A license issued electronically and not immediately provided to the licensee shall be mailed to the licensee within 30 days of purchase of the license. A pictorial migratory waterfowl, pheasant, trout and salmon, or walleye stamp shall be provided to the licensee after purchase of a stamp validation only if the licensee pays an additional fee that covers the costs of producing and mailing a pictorial stamp. A pictorial turkey stamp may be purchased for a fee that covers the costs of producing and mailing the pictorial stamp. Notwithstanding section 16A.1283, the commissioner may, by written order published in the State Register, establish fees for providing the pictorial stamps. The fees must be set in an amount that does not recover significantly more or less than the cost of producing and mailing the stamps. The fees are not subject to the rulemaking provisions of chapter 14, and section 14.386 does not apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2018, or on the date the Department of Public Safety implements the Minnesota Licensing and Registration System (MNLARS), whichever occurs first. new text end

Sec. 38.

Minnesota Statutes 2014, section 97A.465, is amended by adding a subdivision to read:

new text begin Subd. 8. new text end

new text begin Nonresident active members of National Guard. new text end

new text begin A nonresident that is an active member of the state's National Guard may obtain a resident license to take fish or game. This subdivision does not apply to the taking of moose or elk. new text end

Sec. 39.

Minnesota Statutes 2014, section 171.07, is amended by adding a subdivision to read:

new text begin Subd. 19. new text end

new text begin Resident lifetime game and fish license. new text end

new text begin (a) The department shall maintain in its records information transmitted electronically from the commissioner of natural resources identifying each person to whom the commissioner has issued a resident lifetime license under section 97A.473. The records transmitted from the Department of Natural Resources must contain: new text end

new text begin (1) the full name and date of birth as required for the driver's license or identification card; new text end

new text begin (2) the person's driver's license or identification card number; new text end

new text begin (3) the category of lifetime license issued under section 97A.473; and new text end

new text begin (4) the Department of Natural Resources customer identification number. new text end

new text begin (b) The department may delete records described in paragraph (a) if they have not been matched to a driver's license or identification card record within seven years after transmission to the department. new text end

new text begin (c) Except as provided in paragraph (b), the department shall include, on all drivers' licenses or Minnesota identification cards issued to a person who holds a lifetime license, a graphic or written designation of the lifetime license, and the category of the lifetime license. new text end

new text begin (d) If a person with a lifetime license under section 97A.473 applies for a driver's license or Minnesota identification card before that information has been transmitted to the department, the department may accept a copy of the license issued under section 97A.473 as proof of its issuance and shall then follow the procedures in paragraph (c). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2018, or on the date the Department of Public Safety implements the Minnesota Licensing and Registration System (MNLARS), whichever occurs first. new text end

Sec. 40.

Laws 2014, chapter 312, article 12, section 6, subdivision 5, as amended by Laws 2015, First Special Session chapter 4, article 3, section 11, is amended to read:

Subd. 5.

Fish and Wildlife Management

-0- 2,412,000

$3,000 in 2015 is from the heritage enhancement account in the game and fish fund for a report on aquatic plant management permitting policies for the management of narrow-leaved and hybrid cattail in a range of basin types across the state. The report shall be submitted to the chairs and ranking minority members of the house of representatives and senate committees with jurisdiction over environment and natural resources by December 15, 2014, and include recommendations for any necessary changes in statutes, rules, or permitting procedures. This is a onetime appropriation.

$9,000 in 2015 is from the game and fish fund for the commissioner, in consultation with interested parties, agencies, and other states, to develop a detailed restoration plan to recover the historical native population of bobwhite quail in Minnesota for its ecological and recreational benefits to the citizens of the state. The commissioner shall conduct public meetings in developing the plan. No later than January 15, 2015, the commissioner must report on the plan's progress to the legislative committees with jurisdiction over environment and natural resources policy and finance. This is a onetime appropriation.

$2,000,000 in 2015 is from the game and fish fund for shooting sports facility grants under Minnesota Statutes, section 87A.10. The commissioner may spend up to $50,000 of this appropriation to administer the grant. This is a onetime appropriation and is available until June 30, 2017.

$400,000 in 2015 is from the heritage enhancement account in the game and fish fund for hunter and angler recruitment and retention activities and grants to local chapters of Let's Go Fishing of Minnesota to provide community outreach to senior citizens, youth, and veterans and for the costs associated with establishing and recruiting new chapters. The grants must be matched with cash or in-kind contributions from nonstate sources. Of this amount, $25,000 is for Asian deleted text begin Outdoor Heritage fordeleted text end youth fishing recruitment efforts and outreach in the metropolitan area. The commissioner shall establish a grant application process that includes a standard for ownership of equipment purchased under the grant program and contract requirements that cover the disposition of purchased equipment if the grantee no longer exists. Any equipment purchased with state grant money must be specified on the grant application and approved by the commissioner. The commissioner may spend up to three percent of the appropriation to administer the grant. This is a onetime appropriation and is available until June 30, deleted text begin 2016deleted text end new text begin 2017new text end .

Sec. 41.

Laws 2015, First Special Session chapter 4, article 3, section 3, subdivision 2, is amended to read:

Subd. 2.

Land and Mineral Resources Management

6,461,000 5,521,000
Appropriations by Fund
2016 2017
General 1,585,000 1,585,000
Natural Resources 3,332,000 3,392,000
Game and Fish 344,000 344,000
Remediation 1,000,000 -0-
Permanent School 200,000 200,000

$68,000 the first year and $68,000 the second year are for minerals cooperative environmental researchdeleted text begin , of which $34,000 the first year and $34,000 the second year are available only as matched by $1 of nonstate money for each $1 of state money. The match may be cash or in-kinddeleted text end .

$251,000 the first year and $251,000 the second year are for iron ore cooperative research. Of this amount, $200,000 each year is from the minerals management account in the natural resources fund. deleted text begin $175,000 the first year and $175,000 the second year are deleted text end deleted text begin available only as matched by $1 of nonstate money for each $1 of state money. The match may be cash or in-kind.deleted text end Any unencumbered balance from the first year does not cancel and is available in the second year.

$2,755,000 the first year and $2,815,000 the second year are from the minerals management account in the natural resources fund for use as provided in Minnesota Statutes, section 93.2236, paragraph (c), for mineral resource management, projects to enhance future mineral income, and projects to promote new mineral resource opportunities.

$200,000 the first year and $200,000 the second year are from the state forest suspense account in the permanent school fund to accelerate land exchanges, land sales, and commercial leasing of school trust lands and to identify, evaluate, and lease construction aggregate located on school trust lands. This appropriation is to be used for securing long-term economic return from the school trust lands consistent with fiduciary responsibilities and sound natural resources conservation and management principles.

Notwithstanding Minnesota Statutes, section 115B.20, $1,000,000 the first year is from the dedicated account within the remediation fund for the purposes of Minnesota Statutes, section 115B.20, subdivision 2, clause (4), to acquire salt lands as described under Minnesota Statutes, section 92.05, within Bear Head Lake State Park. This is a onetime appropriation and is available until June 30, 2018.

Sec. 42.

Laws 2015, First Special Session chapter 4, article 3, section 3, subdivision 5, is amended to read:

Subd. 5.

Parks and Trails Management

74,064,000 73,650,000
Appropriations by Fund
2016 2017
General 24,967,000 24,427,000
Natural Resources 46,831,000 46,950,000
Game and Fish 2,266,000 2,273,000

$1,075,000 the first year and $1,075,000 the second year are from the water recreation account in the natural resources fund for enhancing public water access facilities.

$5,740,000 the first year and $5,740,000 the second year are from the natural resources fund for state trail, park, and recreation area operations. This appropriation is from the revenue deposited in the natural resources fund under Minnesota Statutes, section 297A.94, paragraph (e), clause (2).

$1,005,000 the first year and $1,005,000 the second year are from the natural resources fund for park and trail grants to local units of government on land to be maintained for at least 20 years for the purposes of the grants. This appropriation is from the revenue deposited in the natural resources fund under Minnesota Statutes, section 297A.94, paragraph (e), clause (4). Any unencumbered balance does not cancel at the end of the first year and is available for the second year.new text begin Up to 2.5 percent of this appropriation may be used to administer the grants.new text end

$8,424,000 the first year and $8,424,000 the second year are from the snowmobile trails and enforcement account in the natural resources fund for the snowmobile grants-in-aid program. Any unencumbered balance does not cancel at the end of the first year and is available for the second year.

$1,360,000 the first year and $1,360,000 the second year are from the natural resources fund for the off-highway vehicle grants-in-aid program. Of this amount, $1,210,000 each year is from the all-terrain vehicle account; and $150,000 each year is from the off-highway motorcycle account. Any unencumbered balance does not cancel at the end of the first year and is available for the second year.

$75,000 the first year and $75,000 the second year are from the cross-country ski account in the natural resources fund for grooming and maintaining cross-country ski trails in state parks, trails, and recreation areas.

$250,000 the first year and $250,000 the second year are from the state land and water conservation account (LAWCON) in the natural resources fund for priorities established by the commissioner for eligible state projects and administrative and planning activities consistent with Minnesota Statutes, section 84.0264, and the federal Land and Water Conservation Fund Act. Any unencumbered balance does not cancel at the end of the first year and is available for the second year.

$968,000 the first year and $968,000 the second year are from the off-road vehicle account in the natural resources fund. Of this amount, $568,000 each year is for parks and trails management for off-road vehicle purposes; $325,000 each year is for the off-road vehicle grant in aid program; and $75,000 each year is for a new full-time employee position or contract in northern Minnesota to work in conjunction with the Minnesota Four-Wheel Drive Association to address off-road vehicle touring routes and other issues related to off-road vehicle activities. Of this appropriation, the $325,000 each year is onetime.

$65,000 the first year is from the water recreation account in the natural resources fund to cooperate with local units of government in marking routes and designating river accesses and campsites under Minnesota Statutes, section 85.32. This is a onetime appropriation and is available until June 30, 2019.

$190,000 the first year is for a grant to the city of Virginia for the additional cost of supporting a trail due to the rerouting of U.S. Highway No. 53. This is a onetime appropriation and is available until June 30, 2019.

$50,000 the first year is for development of a master plan for the Mississippi Blufflands Trail, including work on possible extensions or connections to other state or regional trails. This is a onetime appropriation that is available until June 30, 2017.

$61,000 from the natural resources fund the first year is for a grant to the city of East Grand Forks for payment under a reciprocity agreement for the Red River State Recreation Area.

$500,000 the first year is for restoration or replacement of a historic trestle bridge in Blackduck. This is a onetime appropriation and is available until June 30, 2019.

The base for parks and trails operations in the natural resources fund in fiscal year 2018 and thereafter is $46,450,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 43.

Laws 2015, First Special Session chapter 4, article 4, section 131, is amended to read:

Sec. 131.

SURPLUS STATE LAND SALES.

The school trust lands director shall identify, in consultation with the commissioner of natural resources, at least $5,000,000 in state-owned lands suitable for salenew text begin or exchange with school trust landsnew text end . The lands identified shall not be within a unit of the outdoor recreation system under Minnesota Statutes, section 86A.05, an administrative site, or trust land. The commissioner shall sell new text begin or exchange new text end at least $3,000,000 worth of lands identified under this section by June 30, 2017. new text begin Land exchanged under this section may be exchanged in accordance with Minnesota Statutes, section 94.3495. The value of the surplus land exchanged shall serve as compensation to the permanent school fund as provided under Minnesota Statutes, section 84.027, subdivision 18, paragraph (b). Notwithstanding the restrictions on sale of riparian land and the public sale provisions under Minnesota Statutes, sections 92.45, 94.09, and 94.10, the commissioner may offer the surplus land, including land bordering public water, for public or private sale. new text end Notwithstanding Minnesota Statutes, section 94.16, subdivision 3, or any other law to the contrary, deleted text begin the amountdeleted text end new text begin an amount equal to 90 percentnew text end of the proceeds from the sale of lands that exceeds the actual expenses of selling the lands must be deposited in the school trust lands account and used to extinguish the school trust interest as provided under Minnesota Statutes, section 92.83, on school trust lands that have public water access sites or old growth forests located on them.new text begin Notwithstanding Minnesota Statutes, section 92.83, the remaining ten percent of the proceeds must be used to fund transactional and legal work associated with the Boundary Waters Canoe Area Wilderness land exchange and sale projects under Minnesota Statutes, sections 92.80 and 92.82.new text end

Sec. 44.

new text begin COLD SPRING WATER APPROPRIATION PERMITS; REPORT. new text end

new text begin (a) The commissioner of natural resources shall amend the city of Cold Spring's water appropriation permit to allow an increase in the city's water withdrawal of 100 million gallons per year from city wells 4, 5, and 6, provided a combined reduction of ten million gallons per year is made from city well 3 or water appropriations under any permits held by brewing companies in the Cold Spring Creek area. The city and any other permit holder with permit modifications made under this section must comply with all existing reporting requirements and demonstrate that increased pumping does not result in violations of the Safe Drinking Water Act. The increases under this section are available on an interim basis, not to exceed five years, to allow the city to establish a long-term water supply solution for the city and area businesses. new text end

new text begin (b) The commissioner must conduct necessary monitoring of stream flow and water levels and develop a groundwater model to determine the amount of water that can be sustainably pumped in the area of Cold Spring Creek for area businesses, agriculture, and city needs. Beginning July 1, 2017, the commissioner must submit an annual progress report to the chairs and ranking minority members of the house of representatives and senate committees and divisions with jurisdiction over environment and natural resources. The commissioner must submit a final report by January 15, 2022. new text end

Sec. 45.

new text begin MARINE CARBON MONOXIDE DETECTORS; REPORT. new text end

new text begin The commissioner of natural resources shall submit a report to the legislature by November 1, 2017. The report must outline any issues encountered relating to implementation of Minnesota Statutes, section 86B.532, any changes to marine manufacturing industry standards relating to carbon monoxide, the availability of plug-in or battery-powered marine certified carbon monoxide detectors, and best practices in preventing carbon monoxide poisoning relating to motorboat operation, including the feasibility of requiring carbon monoxide detectors that are more sensitive in measuring carbon monoxide than required in this act. new text end

Sec. 46.

new text begin PRESCRIBED BURN REQUIREMENTS; REPORT. new text end

new text begin The commissioner of natural resources, in cooperation with prescribed burning professionals, nongovernmental organizations, and local and federal governments, must develop criteria for certifying an entity to conduct a prescribed burn under a general permit. The certification requirements must include training, equipment, and experience requirements and include an apprentice program to allow entities without experience to become certified. The commissioner must establish provisions for decertifying entities. The commissioner must not require additional certification or requirements for burns conducted as part of normal agricultural practices not currently subject to prescribed burn specifications. The commissioner must submit a report with recommendations and any legislative changes needed to the chairs and ranking minority members of the house of representatives and senate committees and divisions with jurisdiction over environment and natural resources by January 15, 2017. new text end

Sec. 47.

new text begin SAND DUNES STATE FOREST; REPORT. new text end

new text begin (a) Until July 1, 2017, the commissioner of natural resources shall not log, enter into a logging contract, or otherwise remove trees for purposes of creating oak savanna in the Sand Dunes State Forest. This paragraph does not prohibit work done under contracts entered into before the effective date of this section or work on school trust lands. new text end

new text begin (b) By January 15, 2017, the commissioner must submit a report, prepared by the Division of Forestry, to the chairs and ranking minority members of the house of representatives and senate committees and divisions with jurisdiction over environment and natural resources with the Division of Forestry's progress on collaborating with local citizens and other stakeholders over the past year when making decisions that impact the landscape, including forest conversions and other clear-cutting activities, and the division's progress on other citizen engagement activities. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 48.

new text begin LAKE SERVICE PROVIDER FEASIBILITY REPORT. new text end

new text begin The commissioner of natural resources shall report to the chairs of the house of representatives and senate committees with jurisdiction over natural resources by January 15, 2019, regarding the feasibility of expanding permitting to service providers as described in Minnesota Statutes, section 84D.108, subdivision 2a, to other water bodies in the state. The report must: new text end

new text begin (1) include recommendations for state and local resources needed to implement the program; new text end

new text begin (2) assess local government inspection roles under Minnesota Statutes, section 84D.105, subdivision 2, paragraph (g); and new text end

new text begin (3) assess whether mechanisms to ensure that water-related equipment placed back into the same body of water from which it was removed can adequately protect other water bodies. new text end

Sec. 49.

new text begin WORKERS' COMPENSATION FOR VOLUNTEERS; REPORT. new text end

new text begin By January 15, 2017, the commissioner of natural resources, in coordination with the commissioner of labor and industry and the Workers' Compensation Advisory Council, shall make recommendations to the chairs of the house of representatives and senate committees and divisions with jurisdiction over the environment and natural resources on how to clarify the state's liability for workers' compensation in relation to volunteers of nonprofit organizations assisting with providing public services on lands administered by the commissioner of natural resources subject to Minnesota Statutes, section 175.007, subdivision 2. new text end

Sec. 50.

new text begin AGGREGATE RESOURCES TASK FORCE. new text end

new text begin Subdivision 1. new text end

new text begin Creation; membership. new text end

new text begin (a) The Aggregate Resources Task Force consists of eight members appointed as follows: new text end

new text begin (1) the speaker of the house shall appoint four members of the house of representatives to include two members of the majority party and two members of the minority party, with one member being the chair of the committee with jurisdiction over aggregate mining; and new text end

new text begin (2) the senate Subcommittee on Committees of the Committee on Rules and Administration shall appoint four members of the senate to include two members of the majority party and two members of the minority party, with one member being the chair of the committee or division with jurisdiction over natural resources finance. new text end

new text begin (b) The appointing authorities must make their respective appointments no later than July 15, 2016. new text end

new text begin (c) The first meeting of the task force must be convened by the chairs of the house of representatives and senate committees specified in paragraph (a) who will serve as cochairs of the task force. new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin The task force must study and provide recommendations on: new text end

new text begin (1) the Department of Natural Resources' and Metropolitan Council's aggregate mapping progress and needs; new text end

new text begin (2) the effectiveness of recent aggregate tax legislation and the use of the revenues collected by counties; new text end

new text begin (3) the use of state funds to preserve aggregate reserves; and new text end

new text begin (4) local land use and permitting issues, environmental review requirements, and the impacts of other state regulations on aggregate reserves. new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin No later than January 15, 2018, the task force shall submit a report to the chairs of the house of representatives and senate committees and divisions with jurisdiction over aggregate mining and natural resources finance containing the findings of the study. new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin The Aggregate Resources Task Force expires 45 days after the report and recommendations are delivered to the legislature or on June 30, 2018, whichever date is earlier. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 51.

new text begin APPROPRIATION REALLOCATION. new text end

new text begin Notwithstanding Laws 2013, chapter 137, article 3, section 4, paragraph (o), and Laws 2015, First Special Session chapter 2, article 3, section 4, paragraph (b), the Minneapolis Park and Recreation Board may allocate its share of the distribution of fiscal years 2016 and 2017 funds under Minnesota Statutes, section 85.53, subdivision 3, to the Minneapolis Chain of Lakes, Mississippi Gorge, Above the Falls, and Central Mississippi Riverfront Regional Parks in accordance with the most recent priority rankings that the Minneapolis Park and Recreation Board has submitted to the Metropolitan Council. This reallocation of funds is anticipated to result in $500,000 in federal funds to match extant parks and trails fund appropriations. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 52.

new text begin CITATION. new text end

new text begin Sections 23, 24, 25, 26, and 45 may be known and cited as "Sophia's Law." new text end

Sec. 53.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2014, section 116P.13, new text end new text begin is repealed. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2018, and any funds remaining in the Minnesota future resources fund on July 1, 2018, are transferred to the general fund. new text end

ARTICLE 4

PUBLIC SAFETY AND CORRECTIONS

Section 1.

new text begin APPROPRIATIONS.new text end

new text begin The sums shown in the column under "Appropriations" are added to the appropriations in Laws 2015, chapter 65, article 1, to the agencies and for the purposes specified in this article. The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2016" and "2017" used in this article mean that the addition to the appropriation listed under them is available for the fiscal year ending June 30, 2016, or June 30, 2017, respectively. Supplemental appropriations for the fiscal year ending June 30, 2016, are effective the day following final enactment. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2016 new text end new text begin 2017 new text end

Sec. 2.

new text begin SUPREME COURT new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 1,000,000 new text end

new text begin For a competitive grant program established by the chief justice for the distribution of safe and secure courthouse fund grants to government entities responsible for providing or maintaining a courthouse or other facility where court proceedings are held. Grant recipients must provide a 50 percent nonstate match. This is a onetime appropriation and is available until June 30, 2019. new text end

Sec. 3.

new text begin DISTRICT COURTS new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 1,547,000 new text end

new text begin To increase the juror per diem to $20 and the juror mileage reimbursement rate to 54 cents per mile. new text end

Sec. 4.

new text begin GUARDIAN AD LITEM BOARD new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 878,000 new text end

new text begin To hire additional guardians ad litem to comply with federal and state mandates, and court orders for representing the best interests of children in juvenile and family court proceedings. new text end

Sec. 5.

new text begin HUMAN RIGHTS new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 180,000 new text end

new text begin For a St. Cloud office. new text end

Sec. 6.

new text begin CORRECTIONS new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin 4,341,000 new text end new text begin $ new text end new text begin 15,426,000 new text end

new text begin The amounts that may be spent for each purpose are specified in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Correctional Institutions new text end

new text begin 4,037,000 new text end new text begin 10,671,000 new text end

new text begin (a) Employee Compensation new text end

new text begin $1,427,000 in fiscal year 2016 and $7,512,000 in fiscal year 2017 are for employee compensation. new text end

new text begin (b) Challenge Incarceration Expansion new text end

new text begin $2,610,000 in fiscal year 2016 and $2,757,000 in fiscal year 2017 are to increase capacity in the challenge incarceration program. The base for this activity is $3,263,000 in fiscal year 2018 and $3,623,000 in fiscal year 2019. new text end

new text begin (c) 24-Hour Nursing new text end

new text begin $375,000 in fiscal year 2017 is for 24-hour nursing coverage seven days a week at MCF-Shakopee. new text end

new text begin Subd. 3. new text end

new text begin Community Services new text end

new text begin 241,000 new text end new text begin 2,566,000 new text end

new text begin (a) Employee Compensation new text end

new text begin $241,000 in fiscal year 2016 and $860,000 in fiscal year 2017 are for employee compensation. new text end

new text begin (b) Challenge Incarceration Expansion new text end

new text begin $406,000 in fiscal year 2017 is to increase capacity in the challenge incarceration program. new text end

new text begin (c) Reentry and Halfway Houses new text end

new text begin $300,000 in fiscal year 2017 is for grants to counties or groups of counties for reentry and halfway house services. Eligible programs must be proven to reduce recidivism. Grant recipients must provide a 50 percent nonstate match. new text end

new text begin (d) High-Risk Revocation Reduction Program new text end

new text begin $1,000,000 in fiscal year 2017 is to establish a high-risk revocation reduction program in the metropolitan area. The program shall provide sustained case planning, housing assistance, employment assistance, group mentoring, life skills programming, and transportation assistance to adult release violators who are being released from prison. new text end

new text begin Subd. 4. new text end

new text begin Operations Support new text end

new text begin 63,000 new text end new text begin 2,189,000 new text end

new text begin (a) Employee Compensation new text end

new text begin $63,000 in fiscal year 2016 and $339,000 in fiscal year 2017 are for employee compensation. new text end

new text begin (b) Information Technology Critical Updates new text end

new text begin $1,850,000 in fiscal year 2017 is for information technology upgrades and staffing. This is a onetime appropriation. new text end

Sec. 7.

new text begin PUBLIC SAFETY new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 6,100,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin -0- new text end new text begin 1,600,000 new text end
new text begin Trunk Highway new text end new text begin -0- new text end new text begin 4,500,000 new text end

new text begin The amounts that may be spent for each purpose are specified in the following paragraphs. new text end

new text begin (a) DNA Laboratory new text end

new text begin $630,000 is for the Bureau of Criminal Apprehension DNA laboratory, including the addition of six forensic scientists. The base for this activity is $1,000,000 in each of the fiscal years 2018 and 2019 for eight forensic scientists. new text end

new text begin (b) Children In Need of Services or in Out-Of-Home Placement new text end

new text begin $150,000 is for a grant to an organization that provides legal representation to children in need of protection or services and children in out-of-home placement. The grant is contingent upon a match in an equal amount from nonstate funds. The match may be in kind, including the value of volunteer attorney time, or in cash, or in a combination of the two. new text end

new text begin (c) Sex Trafficking new text end

new text begin $820,000 is for grants to state and local units of government for the following purposes: new text end

new text begin (1) to support new or existing multijurisdictional entities to investigate sex trafficking crimes; and new text end

new text begin (2) to provide technical assistance for sex trafficking crimes, including training and case consultation, to law enforcement agencies statewide. new text end

new text begin (d) State Patrol new text end

new text begin $4,500,000 is from the trunk highway fund to recruit, hire, train, and equip a State Patrol Academy. This amount is added to the appropriation in Laws 2015, chapter 75, article 1, section 5, subdivision 3. The base appropriation from the trunk highway fund for patrolling highways in each of fiscal years 2018 and 2019 is $87,492,000, which includes $4,500,000 each year for a State Patrol Academy. new text end

Sec. 8.

Minnesota Statutes 2014, section 171.07, subdivision 6, is amended to read:

Subd. 6.

Medical alert identifier.

Upon the written request of the applicant, the department shall issue a driver's license or Minnesota identification card bearing a new text begin graphic or written new text end medical alert identifier. The applicant must request the medical alert identifier at the time the photograph or electronically produced image is taken. No specific medical information will be contained on the driver's license or Minnesota identification card.

Sec. 9.

Minnesota Statutes 2014, section 171.07, subdivision 7, is amended to read:

Subd. 7.

Living Will/Health Care Directive designation.

(a) At the written request of the applicant and on payment of the required fee, the department shall issue, renew, or reissue a driver's license or Minnesota identification card bearing the new text begin graphic or written new text end designation new text begin of a new text end deleted text begin "deleted text end Living Will/Health Care Directivedeleted text begin " or an abbreviation thereofdeleted text end . The designation does not constitute delivery of a health care declaration under section 145B.05.

(b) On payment of the required fee, the department shall issue a replacement or renewal license or identification card without the designation if requested by the applicant.

(c) This subdivision does not impose any additional duty on a health care provider, as defined in section 145B.02, subdivision 6, or 145C.01, subdivision 6, beyond the duties imposed in chapter 145B or 145C.

(d) For the purposes of this subdivision:

(1) "living will" means a declaration made under section 145B.03; and

(2) "health care directive" means a durable power of attorney for health care under section 145C.02, or any other written advance health care directive of the applicant that is authorized by statute or not prohibited by law.

Sec. 10.

Minnesota Statutes 2014, section 171.07, subdivision 15, is amended to read:

Subd. 15.

Veteran designation.

(a) At the request of an eligible applicant and on payment of the required fee, the department shall issue, renew, or reissue to the applicant a driver's license or Minnesota identification card bearing a new text begin graphic or written new text end designation of:

(1) deleted text begin "deleted text end Veterandeleted text begin "deleted text end ; or

(2) deleted text begin "deleted text end Veteran 100% T&P.deleted text begin "deleted text end

(b) At the time of the initial application for the designation provided under this subdivision, the applicant must:

(1) be a veteran, as defined in section 197.447;

(2) have a certified copy of the veteran's discharge papers; and

(3) if the applicant is seeking the disability designation under paragraph (a), clause (2), provide satisfactory evidence of a 100 percent total and permanent service-connected disability as determined by the United States Department of Veterans Affairs.

(c) The commissioner of public safety is required to issue drivers' licenses and Minnesota identification cards with the veteran designation only after entering a new contract or in coordination with producing a new card design with modifications made as required by law.

Sec. 11.

Minnesota Statutes 2014, section 243.166, subdivision 1b, is amended to read:

Subd. 1b.

Registration required.

(a) A person shall register under this section if:

(1) the person was charged with or petitioned for a felony violation of or attempt to violate, or aiding, abetting, or conspiracy to commit, any of the following, and convicted of or adjudicated delinquent for that offense or another offense arising out of the same set of circumstances:

(i) murder under section 609.185, paragraph (a), clause (2);

(ii) kidnapping under section 609.25;

(iii) criminal sexual conduct under section 609.342; 609.343; 609.344; 609.345; 609.3451, subdivision 3; or 609.3453; or

(iv) indecent exposure under section 617.23, subdivision 3;

(2) the person was charged with or petitioned for a violation of, or attempt to violate, or aiding, abetting, or conspiring to commit criminal abuse in violation of section 609.2325, subdivision 1, paragraph (b); false imprisonment in violation of section 609.255, subdivision 2; solicitation, inducement, or promotion of the prostitution of a minor or engaging in the sex trafficking of a minor in violation of section 609.322; a prostitution offense deleted text begin involving a minor under the age of 13 yearsdeleted text end in violation of section 609.324, subdivision 1, paragraph (a); soliciting a minor to engage in sexual conduct in violation of section 609.352, subdivision 2 or 2a, clause (1); using a minor in a sexual performance in violation of section 617.246; or possessing pornographic work involving a minor in violation of section 617.247, and convicted of or adjudicated delinquent for that offense or another offense arising out of the same set of circumstances;

(3) the person was sentenced as a patterned sex offender under section 609.3455, subdivision 3a; or

(4) the person was charged with or petitioned for, including pursuant to a court martial, violating a law of the United States, including the Uniform Code of Military Justice, similar to the offenses described in clause (1), (2), or (3), and convicted of or adjudicated delinquent for that offense or another offense arising out of the same set of circumstances.

(b) A person also shall register under this section if:

(1) the person was charged with or petitioned for an offense in another state that would be a violation of a law described in paragraph (a) if committed in this state and convicted of or adjudicated delinquent for that offense or another offense arising out of the same set of circumstances;

(2) the person enters this state to reside, work, or attend school, or enters this state and remains for 14 days or longer; and

(3) ten years have not elapsed since the person was released from confinement or, if the person was not confined, since the person was convicted of or adjudicated delinquent for the offense that triggers registration, unless the person is subject to a longer registration period under the laws of another state in which the person has been convicted or adjudicated, or is subject to lifetime registration.

If a person described in this paragraph is subject to a longer registration period in another state or is subject to lifetime registration, the person shall register for that time period regardless of when the person was released from confinement, convicted, or adjudicated delinquent.

(c) A person also shall register under this section if the person was committed pursuant to a court commitment order under Minnesota Statutes 2012, section 253B.185, chapter 253D, Minnesota Statutes 1992, section 526.10, or a similar law of another state or the United States, regardless of whether the person was convicted of any offense.

(d) A person also shall register under this section if:

(1) the person was charged with or petitioned for a felony violation or attempt to violate any of the offenses listed in paragraph (a), clause (1), or a similar law of another state or the United States, or the person was charged with or petitioned for a violation of any of the offenses listed in paragraph (a), clause (2), or a similar law of another state or the United States;

(2) the person was found not guilty by reason of mental illness or mental deficiency after a trial for that offense, or found guilty but mentally ill after a trial for that offense, in states with a guilty but mentally ill verdict; and

(3) the person was committed pursuant to a court commitment order under section 253B.18 or a similar law of another state or the United States.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016, and applies to crimes committed on or after that date. new text end

Sec. 12.

new text begin [325E.041] SENSORY TESTING RESEARCH. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have the meanings given: new text end

new text begin (1) "sensory testing firm" means a business that tests consumer reaction to physical aspects of products for a third-party client; new text end

new text begin (2) "trained sensory assessors" means members of the public at least 21 years of age selected by sensory testing firms and trained for a minimum of one hour to test products; new text end

new text begin (3) "sensory testing facility" means a facility specifically designed as a controlled environment for testing; and new text end

new text begin (4) "department" means the Department of Public Safety. new text end

new text begin Subd. 2. new text end

new text begin Allowed activities. new text end

new text begin Notwithstanding any law to the contrary, a sensory testing firm may possess and may purchase alcohol at retail or wholesale, and may allow consumption of that alcohol, by trained sensory assessors for testing purposes at their facility, provided that: new text end

new text begin (1) the firm must comply with section 340A.409 and all other state laws that do not conflict with this section; new text end

new text begin (2) firms choosing to serve alcohol must be licensed by the department, which may assess a fee sufficient to cover costs; and new text end

new text begin (3) records of testing protocols must be retained by the firm for at least one year. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 13.

Minnesota Statutes 2014, section 484.90, subdivision 6, is amended to read:

Subd. 6.

Allocation.

(a) In all cases prosecuted in district court by an attorney for a municipality or other subdivision of government within the county for violations of state statute, or of an ordinance; or charter provision, rule, or regulation of a city; all fines, penalties, and forfeitures collected shall be deposited in the state treasury and distributed according to this paragraph. new text begin For the purpose of this section, the county attorney shall be considered the attorney for any town in which a violation occurs. new text end Except where a different disposition is provided by section 299D.03, subdivision 5, 484.841, 484.85, or other law, on or before the last day of each month, the courts shall pay over all fines, penalties, and forfeitures collected by the court administrator during the previous month as follows:

(1) 100 percent of all fines or penalties for parking violations for which complaints and warrants have not been issued to the treasurer of the city or town in which the offense was committed; and

(2) two-thirds of all other fines to the treasurer of the city or town in which the offense was committed and one-third credited to the state general fund.

All other fines, penalties, and forfeitures collected by the court administrator shall be distributed by the courts as provided by law.

(b) Fines, penalties, and forfeitures shall be distributed as provided in paragraph (a) when:

(1) a city contracts with the county attorney for prosecutorial services under section 484.87, subdivision 3;

(2) a city has a population of 600 or less and has given the duty to prosecute cases to the county attorney under section 484.87; or

(3) the attorney general provides assistance to the county attorney as permitted by law.

Sec. 14.

new text begin [609.2233] FELONY ASSAULT MOTIVATED BY BIAS; INCREASED STATUTORY MAXIMUM SENTENCE. new text end

new text begin A person who violates section 609.221, 609.222, or 609.223 because of the victim's or another person's actual or perceived race, color, religion, sex, sexual orientation, disability as defined in section 363A.03, age, or national origin is subject to a statutory maximum penalty of 25 percent longer than the maximum penalty otherwise applicable. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016, and applies to crimes committed on or after that date. new text end

Sec. 15.

Minnesota Statutes 2015 Supplement, section 609.324, subdivision 1, is amended to read:

Subdivision 1.

Engaging in, hiring, or agreeing to hire minor to engage in prostitution; penalties.

(a) Whoever intentionally does any of the following may be sentenced to imprisonment for not more than 20 years or to payment of a fine of not more than $40,000, or both:

(1) engages in prostitution with an individual under the age of 13 years; deleted text begin ordeleted text end

(2) hires or offers or agrees to hire an individual under the age of 13 years to engage in sexual penetration or sexual contactnew text begin ; ornew text end

new text begin (3) hires or offers or agrees to hire an individual who the actor reasonably believes to be under the age of 13 years to engage in sexual penetration or sexual contactnew text end .

(b) Whoever intentionally does any of the following may be sentenced to imprisonment for not more than ten years or to payment of a fine of not more than $20,000, or both:

(1) engages in prostitution with an individual under the age of 16 years but at least 13 years; deleted text begin ordeleted text end

(2) hires or offers or agrees to hire an individual under the age of 16 years but at least 13 years to engage in sexual penetration or sexual contactnew text begin ; ornew text end

new text begin (3) hires or offers or agrees to hire an individual who the actor reasonably believes to be under the age of 16 years but at least 13 years to engage in sexual penetration or sexual contactnew text end .

(c) Whoever intentionally does any of the following may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both:

(1) engages in prostitution with an individual under the age of 18 years but at least 16 years;

(2) hires or offers or agrees to hire an individual under the age of 18 years but at least 16 years to engage in sexual penetration or sexual contact; or

(3) hires or offers or agrees to hire an individual who the actor reasonably believes to be under the age of 18 yearsnew text begin but at least 16 yearsnew text end to engage in sexual penetration or sexual contact.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016, and applies to crimes committed on or after that date. new text end

Sec. 16.

Laws 2015, chapter 65, article 1, section 18, is amended to read:

Sec. 18.

AVIAN INFLUENZAnew text begin AND AGRICULTURALnew text end EMERGENCY RESPONSE.

Notwithstanding Minnesota Statutes, section 12.221, subdivision 6, deleted text begin for fiscal years 2016 and 2017deleted text end new text begin through June 30, 2019,new text end only, the disaster contingency account, under Minnesota Statutes, section 12.221, subdivision 6, may be used to pay for costs of deleted text begin eligible avian influenzadeleted text end emergency response activitiesnew text begin for avian influenza and any agricultural emergencynew text end . By January 15, 2018, new text begin and again by January 15, 2020, new text end the commissioner of management and budget must report to the chairs and ranking minority members of the senate Finance Committee and the house of representatives Committee on Ways and Means on any amount used for deleted text begin avian influenzadeleted text end new text begin the purposes authorizednew text end under this section.

Sec. 17.

new text begin ST. CLOUD STATE UNIVERSITY; SPECIAL LICENSE. new text end

new text begin Notwithstanding any other law, local ordinance, or charter provision to the contrary, the city of St. Cloud may issue an on-sale wine and malt liquor intoxicating liquor license to St. Cloud State University. A license authorized by this section may be issued for space that is not compact and contiguous, provided that all the space is within the boundaries of the campus of St. Cloud State University and is included in the description of the licensed premises on the approved license application. The license under this section authorizes sales on all days of the week to persons attending events at Herb Brooks National Hockey Center, subject to the hours and days of sale restrictions in Minnesota Statutes, and any reasonable license conditions or restrictions imposed by the licensing authority. All other provisions of Minnesota Statutes not inconsistent with this section apply to the license authorized under this section. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the St. Cloud City Council in the manner provided by Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end

Sec. 18.

new text begin INDIAFEST; SPECIAL LICENSE. new text end

new text begin Notwithstanding any other law, local ordinance, or charter provision to the contrary, the city of St. Paul may issue a temporary on-sale intoxicating liquor license to the India Association of Minnesota, a nonprofit 501(c)(3) organization, for Indiafest on the grounds of the State Capitol. The license may authorize only the sale of intoxicating malt liquor and wine. All provisions of Minnesota Statutes not inconsistent with this section apply to the license authorized by this section. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the St. Paul City Council and compliance with Minnesota Statutes, section 645.021. new text end

Sec. 19.

new text begin MAJOR LEAGUE SOCCER STADIUM; SPECIAL LICENSE. new text end

new text begin Notwithstanding any other law, local ordinance, or charter provision to the contrary, the city of St. Paul may issue an on-sale intoxicating liquor license to the operator of the Major League Soccer stadium located in the city of St. Paul or to entities affiliated with it for operation of food and beverage concessions at the stadium. The license may authorize sales both to persons attending any and all events, and sales in a restaurant, bar, or banquet facility at the stadium. The license authorizes sales on all days of the week. All provisions of Minnesota Statutes not inconsistent with this section apply to the license under this section. The license may be issued for a space that is not compact and contiguous, provided that the licensed premises may include only the space within the stadium or on stadium premises or grounds, as described in the approved license application. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the St. Paul City Council and compliance with Minnesota Statutes, section 645.021. new text end

Sec. 20.

new text begin JANESVILLE; SPECIAL LICENSE. new text end

new text begin Notwithstanding any law or ordinance to the contrary, the city of Janesville may issue an on-sale intoxicating liquor license for the Prairie Ridge Golf Club that is located at 2000 North Main Street and is owned by the city. The provisions of Minnesota Statutes not inconsistent with this section apply to the license issued under this section. The city of Janesville is deemed the licensee under this section, and the relevant provisions of Minnesota Statutes apply to the licensee as if the establishment were a municipal liquor store. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Janesville City Council and compliance with Minnesota Statutes, section 645.021. new text end

Sec. 21.

new text begin CITY OF MINNEAPOLIS; SPECIAL LICENSE. new text end

new text begin The city of Minneapolis may issue an on-sale intoxicating liquor license to a restaurant located at 5000 Hiawatha Avenue, notwithstanding any law or local ordinance or charter provision to the contrary. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Minneapolis City Council and compliance with Minnesota Statutes, section 645.021. new text end

Sec. 22.

new text begin REPEALER. new text end

new text begin Special Laws 1891, chapter 57, chapter XII, section 5, is repealed. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the Duluth City Council and compliance with Minnesota Statutes, section 645.021. new text end

ARTICLE 5

BROADBAND DEVELOPMENT

Section 1.

new text begin DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 35,000,000 new text end

new text begin Border-To-Border Broadband Development Program. (a) $35,000,000 in fiscal year 2017 is from the general fund for deposit in the border-to-border broadband fund account under Minnesota Statutes, section 116J.396, to award grants under that section. Of this appropriation, no more than $5,000,000 may be used for grants to underserved areas. Of this appropriation, up to $1,000,000 may be used for administrative costs, including mapping. This is a onetime appropriation. new text end

new text begin (b) $500,000 may be awarded to projects that propose to expand the availability and adoption of broadband service to areas that contain a significant proportion of low-income households. For the purposes of this paragraph, "low-income households" means households whose household income is less than or equal to 200 percent of the most recent calculation of the United States federal poverty guidelines published by the United States Department of Health and Human Services, adjusted for family size. new text end

new text begin (c) If grant awards in any area are insufficient to fully expend the funds available for that area, the commissioner may reallocate unexpended funds to other areas. new text end

Sec. 2.

Minnesota Statutes 2015 Supplement, section 116J.394, is amended to read:

116J.394 DEFINITIONS.

(a) For the purposes of sections 116J.394 to deleted text begin 116J.396deleted text end new text begin 116J.398new text end , the following terms have the meanings given them.

(b) "Broadband" or "broadband service" has the meaning given in section 116J.39, subdivision 1, paragraph (b).

(c) "Broadband infrastructure" means networks of deployed telecommunications equipment and technologies necessary to provide high-speed Internet access and other advanced telecommunications services for end users.

(d) "Commissioner" means the commissioner of employment and economic development.

(e) "Last-mile infrastructure" means broadband infrastructure that serves as the final leg connecting the broadband service provider's network to the end-use customer's on-premises telecommunications equipment.

(f) "Middle-mile infrastructure" means broadband infrastructure that links a broadband service provider's core network infrastructure to last-mile infrastructure.

(g) "Political subdivision" means any county, city, town, school district, special district or other political subdivision, or public corporation.

(h) "Underserved areas" means areas of Minnesota in which households or businesses lack access to wire-line broadband service at speeds deleted text begin that meet the state broadband goalsdeleted text end of deleted text begin ten to 20deleted text end new text begin at least 100 new text end megabits per second download and deleted text begin five to ten deleted text end new text begin at least 20new text end megabits per second upload.

(i) "Unserved areas" means areas of Minnesota in which households or businesses lack access to wire-line broadband service, as defined in section 116J.39.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 3.

Minnesota Statutes 2014, section 116J.395, subdivision 4, is amended to read:

Subd. 4.

Application process.

new text begin (a) new text end An eligible applicant must submit an application to the commissioner on a form prescribed by the commissioner. The commissioner shall develop administrative procedures governing the application and grant award process. The commissioner shall act as fiscal agent for the grant program and shall be responsible for receiving and reviewing grant applications and awarding grants under this section.

new text begin (b) At least 30 days prior to the first day applications may be submitted each fiscal year, the commissioner must publish on the department's Web site the specific criteria and any quantitative weighting scheme or scoring system the commissioner will use to evaluate or rank applications and award grants under subdivision 6. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 4.

Minnesota Statutes 2014, section 116J.395, subdivision 5, is amended to read:

Subd. 5.

Application contents.

An applicant for a grant under this section shall provide the following information on the application:

(1) the location of the project;

(2) the kind and amount of broadband infrastructure to be purchased for the project;

(3) evidence regarding the unserved or underserved nature of the community in which the project is to be located;

(4) the number of households passed that will have access to broadband service as a result of the project, or whose broadband service will be upgraded as a result of the project;

(5) significant community institutions that will benefit from the proposed project;

(6) evidence of community support for the project;

(7) the total cost of the project;

(8) sources of funding or in-kind contributions for the project that will supplement any grant award; deleted text begin anddeleted text end

(9) new text begin evidence that no later than six weeks before submission of the application the applicant contacted, in writing, all entities providing broadband service in the proposed project area to ask for each broadband service provider's plan to upgrade broadband service in the project area to speeds that meet or exceed the state's broadband speed goals in section 237.012, subdivision 1, within the time frame specified in the proposed grant activities;new text end

new text begin (10) the broadband service providers' written responses to the inquiry made under clause (9); and new text end

new text begin (11) new text end any additional information requested by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 5.

Minnesota Statutes 2014, section 116J.395, is amended by adding a subdivision to read:

new text begin Subd. 5a. new text end

new text begin Challenge process. new text end

new text begin (a) Within three days of the close of the grant application process, the office shall publish on its Web site the proposed geographic broadband service area and the proposed broadband service speeds for each application submitted. new text end

new text begin (b) An existing broadband service provider in or proximate to the proposed project area may, within 30 days of publication of the information under paragraph (a), submit in writing to the commissioner a challenge to an application. A challenge must contain information demonstrating that: new text end

new text begin (1) the provider currently provides or has begun construction to provide broadband service to the proposed project area at speeds equal to or greater than the state speed goal contained in section 237.012, subdivision 1; or new text end

new text begin (2) the provider commits to complete construction of broadband infrastructure and provide broadband service in the proposed project area at speeds equal to or greater than the state speed goal contained in section 237.012, subdivision 1, no later than 18 months after the date grant awards are made under this section for the grant cycle under which the application was submitted. new text end

new text begin (c) The commissioner must evaluate the information submitted in a provider's challenge under this section, and is prohibited from funding a project if the commissioner determines that the provider's commitment to provide broadband service that meets the requirements of paragraph (b) in the proposed project area is credible. new text end

new text begin (d) If the commissioner denies funding to an applicant as a result of a broadband service provider's challenge made under this section, and the broadband service provider does not fulfill the provider's commitment to provide broadband service in the project area, the commissioner is prohibited from denying funding to an applicant as a result of a challenge by the same broadband service provider for the following two grant cycles, unless the commissioner determines that the broadband service provider's failure to fulfill the provider's commitment was the result of factors beyond the broadband service provider's control. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 6.

Minnesota Statutes 2014, section 116J.395, is amended by adding a subdivision to read:

new text begin Subd. 8. new text end

new text begin Application evaluation report. new text end

new text begin By June 30 of each year, the Office of Broadband Development shall publish on the Department of Employment and Economic Development's Web site and provide to the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over broadband a list of all applications for grants under this section received during the previous year and, for each application: new text end

new text begin (1) the results of any quantitative weighting scheme or scoring system the commissioner used to award grants or rank the applications; new text end

new text begin (2) the grant amount requested; and new text end

new text begin (3) the grant amount awarded, if any. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. The initial report submission required under this section is due June 30, 2016. new text end

Sec. 7.

new text begin [116J.397] UPDATED BROADBAND DEPLOYMENT DATA AND MAPS. new text end

new text begin (a) Beginning in 2016 and continuing each year thereafter, the Office of Broadband Development shall contract with one or more independent organizations that have extensive experience working with Minnesota broadband providers to: new text end

new text begin (1) collect broadband deployment data from Minnesota providers, verify its accuracy through on-the-ground testing, and create state and county maps available to the public by April 15, 2017, and each April 15 thereafter, showing the availability of broadband service at various upload and download speeds throughout Minnesota; new text end

new text begin (2) analyze the deployment data collected to help inform future investments in broadband infrastructure; and new text end

new text begin (3) conduct business and residential surveys that measure broadband adoption and use in the state. new text end

new text begin (b) Data provided by a broadband provider under this section is nonpublic data under section 13.02, subdivision 9. Maps produced under this paragraph are public data under section 13.03. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 8.

new text begin [116J.398] BROADBAND PREVAILING WAGE EXEMPTION. new text end

new text begin Notwithstanding any other law to the contrary, section 116J.871 does not apply to a project receiving a grant under section 116J.395 for the construction, installation, remodeling, and repair of last-mile infrastructure, as defined under section 116J.394, paragraph (e). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 9.

Minnesota Statutes 2014, section 237.012, is amended to read:

237.012 BROADBAND GOALS.

Subdivision 1.

Universal access and high-speed goal.

It is a state goal that deleted text begin as soon as possible, but no later than 2015, all state residents and businesses have access to high-speed broadband that provides minimum download speeds of ten to 20 megabits per second and minimum upload speeds of five to ten megabits per second.deleted text end new text begin :new text end

new text begin (1) no later than 2022, all Minnesota businesses and homes have access to high-speed broadband that provides minimum download speeds of at least 25 megabits per second and minimum upload speeds of at least three megabits per second; and new text end

new text begin (2) no later than 2026, all Minnesota businesses and homes have access to at least one provider of broadband with download speeds of at least 100 megabits per second and upload speeds of at least 20 megabits per second. new text end

Subd. 2.

State broadband leadership position.

It is a goal of the state that by deleted text begin 2015deleted text end new text begin 2022new text end and thereafter, the state be in:

(1) the top five states of the United States for broadband speed universally accessible to residents and businesses;

(2) the top five states for broadband access; and

(3) the top 15 when compared to countries globally for broadband penetration.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

ARTICLE 6

ENERGY

Section 1.

Minnesota Statutes 2014, section 115C.09, subdivision 1, is amended to read:

Subdivision 1.

Reimbursable costs.

(a) The board shall provide reimbursement to eligible applicants for reimbursable costs.

(b) The following costs are reimbursable for purposes of this chapter:

(1) corrective action costs incurred by the applicant and documented in a form prescribed by the boarddeleted text begin , except the costs related to the physical removal of a tankdeleted text end new text begin . Corrective action costs incurred by the applicant include costs for physical removal of a tank when the physical removal is part of a corrective action, regardless of whether the tank is leaking at the time of removal, and the removal is directed or approved by the commissionernew text end ;

(2) costs that the responsible person is legally obligated to pay as damages to third parties for bodily injury, property damage, or corrective action costs incurred by a third party caused by a release where the responsible person's liability for the costs has been established by a court order or court-approved settlement; and

(3) up to 180 days of interest costs associated with the financing of corrective action and incurred by the applicant in a written extension of credit or loan that has been signed by the applicant and executed after July 1, 2002, provided that the applicant documents that:

(i) the interest costs are incurred as a result of an extension of credit or loan from a financial institution; and

(ii) the board has not considered the application within the applicable time frame specified in subdivision 2a, paragraph (c).

Interest costs meeting the requirements of this clause are eligible only when they are incurred between the date a complete initial application is received by the board, or the date a complete supplemental application is received by the board, and the date that the board first notifies the applicant of its reimbursement determination. An application is complete when the information reasonably required or requested by the board's staff from the applicant has been received by the board's staff. Interest costs are not eligible for reimbursement to the extent they exceed two percentage points above the adjusted prime rate charged by banks, as defined in section 270C.40, subdivision 5, at the time the extension of credit or loan was executed.

(c) A cost for liability to a third party is incurred by the responsible person when an order or court-approved settlement is entered that sets forth the specific costs attributed to the liability. Except as provided in this paragraph, reimbursement may not be made for costs of liability to third parties until all eligible corrective action costs have been reimbursed. If a corrective action is expected to continue in operation for more than one year after it has been fully constructed or installed, the board may estimate the future expense of completing the corrective action and, after subtracting this estimate from the total reimbursement available under subdivision 3, reimburse the costs for liability to third parties. The total reimbursement may not exceed the limit set forth in subdivision 3.

Sec. 2.

Minnesota Statutes 2014, section 115C.09, subdivision 3, is amended to read:

Subd. 3.

Reimbursements; subrogation; appropriation.

(a) The board shall reimburse an eligible applicant from the fund for 90 percent of the total reimbursable costs incurred at the site, except that the board may reimburse an eligible applicant from the fund for greater than 90 percent of the total reimbursable costs, if the applicant previously qualified for a higher reimbursement rate. For costs associated with a release from a tank in transport, the board may reimburse a maximum of $100,000.

Not more than deleted text begin $1,000,000 may be reimbursed for costs associated with a single release, regardless of the number of persons eligible for reimbursement, and not more thandeleted text end $2,000,000 may be reimbursed for costs associated with a single deleted text begin tank facilitydeleted text end new text begin releasenew text end .

(b) A reimbursement may not be made from the fund under this chapter until the board has determined that the costs for which reimbursement is requested were actually incurred and were reasonable.

(c) When an applicant has obtained responsible competitive bids or proposals according to rules promulgated under this chapter prior to June 1, 1995, the eligible costs for the tasks, procedures, services, materials, equipment, and tests of the low bid or proposal are presumed to be reasonable by the board, unless the costs of the low bid or proposal are substantially in excess of the average costs charged for similar tasks, procedures, services, materials, equipment, and tests in the same geographical area during the same time period.

(d) When an applicant has obtained a minimum of two responsible competitive bids or proposals on forms prescribed by the board and where the rules deleted text begin promulgateddeleted text end new text begin adoptednew text end under this chapter after June 1, 1995, designate maximum costs for specific tasks, procedures, services, materials, equipment and tests, the eligible costs of the low bid or proposal are deemed reasonable if the costs are at or below the maximums set forth in the rules.

(e) Costs incurred for change orders executed as prescribed in rules deleted text begin promulgateddeleted text end new text begin adoptednew text end under this chapter after June 1, 1995, are presumed reasonable if the costs are at or below the maximums set forth in the rules, unless the costs in the change order are above those in the original bid or proposal or are unsubstantiated and inconsistent with the process and standards required by the rules.

(f) A reimbursement may not be made from the fund in response to either an initial or supplemental application for costs incurred after June 4, 1987, that are payable under an applicable insurance policy, except that if the board finds that the applicant has made reasonable efforts to collect from an insurer and failed, the board shall reimburse the applicant.

(g) If the board reimburses an applicant for costs for which the applicant has insurance coverage, the board is subrogated to the rights of the applicant with respect to that insurance coverage, to the extent of the reimbursement by the board. The board may request the attorney general to bring an action in district court against the insurer to enforce the board's subrogation rights. Acceptance by an applicant of reimbursement constitutes an assignment by the applicant to the board of any rights of the applicant with respect to any insurance coverage applicable to the costs that are reimbursed. Notwithstanding this paragraph, the board may instead request a return of the reimbursement under subdivision 5 and may employ against the applicant the remedies provided in that subdivision, except where the board has knowingly provided reimbursement because the applicant was denied coverage by the insurer.

(h) Money in the fund is appropriated to the board to make reimbursements under this chapter. A reimbursement to a state agency must be credited to the appropriation account or accounts from which the reimbursed costs were paid.

(i) The board may reduce the amount of reimbursement to be made under this chapter if it finds that the applicant has not complied with a provision of this chapter, a rule or order issued under this chapter, or one or more of the following requirements:

(1) the agency was given notice of the release as required by section 115.061;

(2) the applicant, to the extent possible, fully cooperated with the agency in responding to the release;

(3) the state rules applicable after December 22, 1993, to operating an underground storage tank and appurtenances without leak detection;

(4) the state rules applicable after December 22, 1998, to operating an underground storage tank and appurtenances without corrosion protection or spill and overfill protection; and

(5) the state rule applicable after November 1, 1998, to operating an aboveground tank without a dike or other structure that would contain a spill at the aboveground tank site.

(j) The reimbursement may be reduced as much as 100 percent for failure by the applicant to comply with the requirements in paragraph (i), clauses (1) to (5). In determining the amount of the reimbursement reduction, the board shall consider:

(1) the reasonable determination by the agency that the noncompliance poses a threat to the environment;

(2) whether the noncompliance was negligent, knowing, or willful;

(3) the deterrent effect of the award reduction on other tank owners and operators;

(4) the amount of reimbursement reduction recommended by the commissioner; and

(5) the documentation of noncompliance provided by the commissioner.

(k) An applicant may request that the board issue a multiparty check that includes each lender who advanced funds to pay the costs of the corrective action or to each contractor or consultant who provided corrective action services. This request must be made by filing with the board a document, in a form prescribed by the board, indicating the identity of the applicant, the identity of the lender, contractor, or consultant, the dollar amount, and the location of the corrective action. The applicant must submit a request for the issuance of a multiparty check for each application submitted to the board. Payment under this paragraph does not constitute the assignment of the applicant's right to reimbursement to the consultant, contractor, or lender. The board has no liability to an applicant for a payment issued as a multiparty check that meets the requirements of this paragraph.

Sec. 3.

Minnesota Statutes 2014, section 115C.13, is amended to read:

115C.13 REPEALER.

Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 115C.093, 115C.094, 115C.10, 115C.11, 115C.112, 115C.113, 115C.12, and 115C.13, are repealed effective June 30, deleted text begin 2017deleted text end new text begin 2022new text end .

Sec. 4.

Minnesota Statutes 2014, section 216B.16, subdivision 12, is amended to read:

Subd. 12.

Exemption for small gas utility franchise.

(a) A municipality may file with the commission a resolution of its governing body requesting exemption from the provisions of this section for a public utility that is under a franchise with the municipality to supply natural, manufactured, or mixed gas and that serves 650 or fewer customers in the municipality as long as the public utility serves no more than a total of deleted text begin 2,000deleted text end new text begin 5,000 new text end customers.

(b) The commission shall grant an exemption from this section for that portion of a public utility's business that is requested by each municipality it serves. Furthermore, the commission shall also grant the public utility an exemption from this section for any service provided outside of a municipality's border that is considered by the commission to be incidental. The public utility shall file with the commission and the department all initial and subsequent changes in rates, tariffs, and contracts for service outside the municipality at least 30 days in advance of implementation.

(c) However, the commission shall require the utility to adopt the commission's policies and procedures governing disconnection during cold weather. The utility shall annually submit a copy of its municipally approved rates to the commission.

(d) In all cases covered by this subdivision in which an exemption for service outside of a municipality is granted, the commission may initiate an investigation under section 216B.17, on its own motion or upon complaint from a customer.

(e) If a municipality files with the commission a resolution of its governing body rescinding the request for exemption, the commission shall regulate the public utility's business in that municipality under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 5.

new text begin [216B.1647] PROPERTY TAX ADJUSTMENT; COOPERATIVE ASSOCIATION. new text end

new text begin A cooperative electric association that has elected to be subject to rate regulation under section 216B.026 is eligible to file with the commission for approval an adjustment for real and personal property taxes, fees, and permits. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 6.

Minnesota Statutes 2014, section 216B.1691, subdivision 10, is amended to read:

Subd. 10.

Utility acquisition of resources.

A competitive resource acquisition process established by the commission prior to June 1, 2007, shall not apply to a utility for the construction, ownership, and operation of generation facilities used to satisfy the requirements of this section unless, upon a finding that it is in the public interest, the commission issues an order on or after June 1, 2007, that requires compliance by a utility with a competitive resource acquisition process. A utility that owns a nuclear generation facility and intends to construct, own, or operate facilities under this section shall file with the commission on or before March 1, 2008, a renewable energy plan setting forth the manner in which the utility proposes to meet the requirements of this sectiondeleted text begin , including a proposed schedule for purchasing renewable energy from C-BED and non-C-BED projectsdeleted text end . The utility shall update the plan as necessary in its filing under section 216B.2422. The commission shall approve the plan unless it determines, after public hearing and comment, that the plan is not in the public interest. As part of its determination of public interest, the commission shall consider the plan's deleted text begin allocation of projects among C-BED, non-C-BED, and utility-owned projects,deleted text end new text begin impact onnew text end balancing the state's interest in:

(1) promoting the policy of economic development in rural areas through the development of renewable energy projects, as expressed in subdivision 9;

(2) maintaining the reliability of the state's electric power grid; and

(3) minimizing cost impacts on ratepayers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 7.

Minnesota Statutes 2014, section 216B.241, subdivision 1c, is amended to read:

Subd. 1c.

Energy-saving goals.

(a) The commissioner shall establish energy-saving goals for energy conservation improvement expenditures and shall evaluate an energy conservation improvement program on how well it meets the goals set.

(b) Each individual utility and association shall have an annual energy-savings goal equivalent to 1.5 percent of gross annual retail energy sales unless modified by the commissioner under paragraph (d). The savings goals must be calculated based on the most recent three-year weather-normalized average. A utility or association may elect to carry forward energy savings in excess of 1.5 percent for a year to the succeeding three calendar years, except that savings from electric utility infrastructure projects allowed under paragraph (d) may be carried forward for five years. A particular energy savings can be used only for one year's goal.

(c) The commissioner must adopt a filing schedule that is designed to have all utilities and associations operating under an energy-savings plan by calendar year 2010.

(d) In its energy conservation improvement plan filing, a utility or association may request the commissioner to adjust its annual energy-savings percentage goal based on its historical conservation investment experience, customer class makeup, load growth, a conservation potential study, or other factors the commissioner determines warrants an adjustment. The commissioner may not approve a plan of a public utility that provides for an annual energy-savings goal of less than one percent of gross annual retail energy sales from energy conservation improvements.

A utility or association may include in its energy conservation plan energy savings from electric utility infrastructure projects approved by the commission under section 216B.1636 or waste heat recovery converted into electricity projects that may count as energy savings in addition to a minimum energy-savings goal of at least one percent for energy conservation improvements. new text begin Energy savings from electric utility infrastructure projects, as defined in section 216B.1636, may be included in the energy conservation plan of a municipal utility or cooperative electric association. new text end Electric utility infrastructure projects must result in increased energy efficiency greater than that which would have occurred through normal maintenance activity.

(e) An energy-savings goal is not satisfied by attaining the revenue expenditure requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the energy-savings goal established in this subdivision.

(f) An association or utility is not required to make energy conservation investments to attain the energy-savings goals of this subdivision that are not cost-effective even if the investment is necessary to attain the energy-savings goals. For the purpose of this paragraph, in determining cost-effectiveness, the commissioner shall consider the costs and benefits to ratepayers, the utility, participants, and society. In addition, the commissioner shall consider the rate at which an association or municipal utility is increasing its energy savings and its expenditures on energy conservation.

(g) On an annual basis, the commissioner shall produce and make publicly available a report on the annual energy savings and estimated carbon dioxide reductions achieved by the energy conservation improvement programs for the two most recent years for which data is available. The commissioner shall report on program performance both in the aggregate and for each entity filing an energy conservation improvement plan for approval or review by the commissioner.

(h) By January 15, 2010, the commissioner shall report to the legislature whether the spending requirements under subdivisions 1a and 1b are necessary to achieve the energy-savings goals established in this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 8.

Minnesota Statutes 2014, section 216B.243, subdivision 8, is amended to read:

Subd. 8.

Exemptions.

new text begin (a) new text end This section does not apply to:

(1) cogeneration or small power production facilities as defined in the Federal Power Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and paragraph (18), subparagraph (A), and having a combined capacity at a single site of less than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or any case where the commission has determined after being advised by the attorney general that its application has been preempted by federal law;

(2) a high-voltage transmission line proposed primarily to distribute electricity to serve the demand of a single customer at a single location, unless the applicant opts to request that the commission determine need under this section or section 216B.2425;

(3) the upgrade to a higher voltage of an existing transmission line that serves the demand of a single customer that primarily uses existing rights-of-way, unless the applicant opts to request that the commission determine need under this section or section 216B.2425;

(4) a high-voltage transmission line of one mile or less required to connect a new or upgraded substation to an existing, new, or upgraded high-voltage transmission line;

(5) conversion of the fuel source of an existing electric generating plant to using natural gas;

(6) the modification of an existing electric generating plant to increase efficiency, as long as the capacity of the plant is not increased more than ten percent or more than 100 megawatts, whichever is greater; deleted text begin ordeleted text end

(7) a wind energy conversion system or solar electric generation facility if the system or facility is owned and operated by an independent power producer and the electric output of the system or facility is not sold to an entity that provides retail service in Minnesota or wholesale electric service to another entity in Minnesota other than an entity that is a federally recognized regional transmission organization or independent system operatornew text begin ; ornew text end

new text begin (8) a large wind energy conversion system, as defined in section 216F.01, subdivision 2, or a solar energy generating large energy facility, as defined in section 216B.2421, subdivision 2, engaging in a repowering project that: new text end

new text begin (i) will not result in the facility exceeding the nameplate capacity under its most recent interconnection agreement; or new text end

new text begin (ii) will result in the facility exceeding the nameplate capacity under its most recent interconnection agreement, provided that the Midcontinent Independent System Operator has provided a signed generator interconnection agreement that reflects the expected net power increasenew text end .

new text begin (b) For the purpose of this subdivision, "repowering project" means: new text end

new text begin (1) modifying a large wind energy conversion system or a solar energy generating large energy facility to increase its efficiency without increasing its nameplate capacity; new text end

new text begin (2) replacing turbines in a large wind energy conversion system without increasing the nameplate capacity of the system; or new text end

new text begin (3) increasing the nameplate capacity of a large wind energy conversion system. new text end

Sec. 9.

Minnesota Statutes 2014, section 216C.20, subdivision 3, is amended to read:

Subd. 3.

Parking ramp.

No enclosed structure or portion of an enclosed structure constructed after January 1, 1978, and used primarily as a commercial parking facility for three or more motor vehicles shall be heated. Incidental heating resulting from building exhaust air passing through a parking facility shall not be prohibited, provided that substantially all useful heat has previously been removed from the air. new text begin The commissioner of commerce may grant an exemption from this subdivision if the commercial parking is integrated within a facility that has both public and private uses, the benefits of the exemption to taxpayers exceed the costs, and all appropriate energy efficiency measures have been considered.new text end

Sec. 10.

Minnesota Statutes 2014, section 216E.03, subdivision 5, is amended to read:

Subd. 5.

Environmental review.

new text begin (a) new text end The commissioner of the Department of Commerce shall prepare for the commission an environmental impact statement on each proposed large electric generating plant or high-voltage transmission line for which a complete application has been submitted. The commissioner shall not consider whether or not the project is needed. No other state environmental review documents shall be required. The commissioner shall study and evaluate any site or route proposed by an applicant and any other site or route the commission deems necessary that was proposed in a manner consistent with rules concerning the form, content, and timeliness of proposals for alternate sites or routes.

new text begin (b) For a cogeneration facility as defined in section 216H.01, subdivision 1a, that is a large electric power generating plant and is not proposed by a utility, the commissioner must make a finding in the environmental impact statement whether the project is likely to result in a net reduction of carbon dioxide emissions, considering both the utility providing electric service to the proposed cogeneration facility and any reduction in carbon dioxide emissions as a result of increased efficiency from the production of thermal energy on the part of the customer operating or owning the proposed cogeneration facility. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 11.

Minnesota Statutes 2014, section 216H.01, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Cogeneration facility or combined heat and power facility. new text end

new text begin "Cogeneration facility" or "combined heat and power facility" means a facility that: new text end

new text begin (1) has the meaning given in United States Code, title 16, section 796, clause (18), paragraph (A); and new text end

new text begin (2) meets the applicable operating and efficiency standards contained in Code of Federal Regulations, title 18, part 292.205. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 12.

Minnesota Statutes 2014, section 216H.03, subdivision 1, is amended to read:

Subdivision 1.

Definition; new large energy facility.

For the purpose of this section, "new large energy facility" means a large energy facility, as defined in section 216B.2421, subdivision 2, clause (1), that is not in operation as of January 1, 2007, but does not include a facility that (1) uses natural gas as a primary fuel, (2) is new text begin a cogeneration facility or combined heat and power facility located in the electric service area of a public utility, as defined in section 216B.02, subdivision 4, or is new text end designed to provide peaking, intermediate, emergency backup, or contingency services, (3) uses a simple cycle or combined cycle turbine technology, and (4) is capable of achieving full load operations within 45 minutes of startup for a simple cycle facility, or is capable of achieving minimum load operations within 185 minutes of startup for a combined cycle facility.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 13.

Minnesota Statutes 2014, section 373.48, subdivision 3, is amended to read:

Subd. 3.

Joint purchase of energy and acquisition of generation projects; financing.

(a) A county may enter into agreements under section 471.59 with other counties for joint purchase of energy or joint acquisition of interests in projects. A county that enters into a multiyear agreement for purchase of energy or acquires an interest in a projectdeleted text begin , including C-BED projects pursuant to section 216B.1612, subdivision 9,deleted text end may finance the estimated cost of the energy to be purchased during the term of the agreement or the cost to the county of the interest in the project by the issuance of revenue bonds of the county, including clean renewable energy revenue bonds, provided that the annual debt service on all bonds issued under this section, together with the amounts to be paid by the county in any year for the purchase of energy under agreements entered into under this section, must not exceed the estimated revenues of the project.

(b) An agreement entered into under section 471.59 as provided by this section may provide that:

(1) each county issues bonds to pay their respective shares of the cost of the projects;

(2) one of the counties issues bonds to pay the full costs of the project and that the other participating counties pay any available revenues of the project and pledge the revenues to the county that issues the bonds; or

(3) the joint powers board issues revenue bonds to pay the full costs of the project and that the participating counties pay any available revenues of the project under this subdivision and pledge the revenues to the joint powers entity for payment of the revenue bonds.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 14.

Laws 2001, chapter 130, section 3, is amended to read:

Sec. 3.

ASSESSMENT.

A propane education and research council, established and certified pursuant to section 2, may assess propane producers and retail marketers an amount not to exceed deleted text begin one milldeleted text end new text begin the maximum assessment authorized in United States Code, title 15, section 6405(a), new text end per gallon of odorized propane in a manner established by the council in compliance with United States Code, title 15, section 6405, subsections (a) to (c). Propane producers and retail marketers shall be responsible for the amounts assessed.

Sec. 15.

Laws 2014, chapter 198, article 2, section 2, the effective date, is amended to read:

EFFECTIVE DATE; APPLICATION.

This section is effective deleted text begin July 1, 2015deleted text end new text begin January 1, 2016new text end , and applies to applications for reimbursement on or after that date.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from May 5, 2014. new text end

Sec. 16.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2014, sections 216B.1612; and 216C.39, new text end new text begin are repealed. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

ARTICLE 7

ECONOMIC DEVELOPMENT

Section 1.

new text begin APPROPRIATIONS new text end

new text begin The sums shown in the columns under "Appropriations" are added to or, if shown in parentheses, subtracted from the appropriations in Laws 2015, First Special Session, chapter 1, or other law to the specified agencies. The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2016" and "2017" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2016, or June 30, 2017, respectively. Appropriations for the fiscal year ending June 30, 2016, are effective the day following final enactment. Reductions may be taken in either fiscal year. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2016 new text end new text begin 2017 new text end

Sec. 2.

new text begin DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 11,721,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin -0- new text end new text begin 7,271,000 new text end
new text begin Workforce Development new text end new text begin -0- new text end new text begin 4,450,000 new text end

new text begin The amounts that may be spent for each purpose are specified in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Business and Community Development new text end

new text begin -0- new text end new text begin 8,021,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin -0- new text end new text begin 7,271,000 new text end
new text begin Workforce Development new text end new text begin -0- new text end new text begin 750,000 new text end

new text begin (a) $9,000,000 in fiscal year 2017 is a onetime reduction in the general fund appropriation for the Minnesota investment fund under Minnesota Statutes, section 116J.8731. The base funding for this purpose is $11,000,000 in fiscal year 2018 and each fiscal year thereafter. new text end

new text begin (b) $11,500,000 in fiscal year 2017 is a onetime reduction in the general fund appropriation for the Minnesota job creation fund under Minnesota Statutes, section 116J.8748. The base funding for this program is $6,500,000 in fiscal year 2018 and each fiscal year thereafter. new text end

new text begin (c) $2,000,000 in fiscal year 2017 is for the redevelopment program under Minnesota Statutes, section 116J.571. This is a onetime appropriation. new text end

new text begin (d) $1,220,000 in fiscal year 2017 is for a grant to the Duluth North Shore Sanitary District to retire debt of the district in order to bring the district's monthly wastewater rates in line with those of similarly situated facilities across the state. This is a onetime appropriation. new text end

new text begin (e) $300,000 in fiscal year 2017 is from the workforce development fund for expansion of business assistance services provided by business development specialists located in the Northwest Region, Northeast Region, West Central Region, Southwest Region, Southeast Region, and Twin Cites Metro Region offices established throughout the state. Funds under this section may be used to provide services including, but not limited to, business start-ups; expansion; location or relocation; finance; regulatory and permitting assistance; and other services determined by the commissioner. The commissioner may also use funds under this section to increase the number of business development specialists in each region of the state, increase and expand the services provided through each regional office, and publicize the services available and provide outreach to communities in each region regarding services and assistance available through the business development specialist program. This is a onetime appropriation. new text end

new text begin (f) $50,000 in fiscal year 2017 is from the workforce development fund to enhance the outreach and public awareness activities of the Bureau of Small Business under Minnesota Statutes, section 116J.68. This is a onetime appropriation. new text end

new text begin (g) $100,000 in fiscal year 2017 is from the general fund for an easy-to-understand manual to instruct aspiring business owners in how to start a child care business. The commissioner shall work in consultation with relevant state and local agencies and affected stakeholders to produce the manual. The manual must be made available electronically to interested persons. This is a onetime appropriation and is available until June 30, 2019. new text end

new text begin (h) $2,500,000 in fiscal year 2017 is for grants to initiative foundations to provide financing for business startups, expansions, and maintenance; and for business ownership transition and succession. This is a onetime appropriation. Of the amount appropriated: new text end

new text begin (1) $357,000 is for a grant to the Southwest Initiative Foundation; new text end

new text begin (2) $357,000 is for a grant to the West Central Initiative Foundation; new text end

new text begin (3) $357,000 is for a grant to the Southern Minnesota Initiative Foundation; new text end

new text begin (4) $357,000 is for a grant to the Northwest Minnesota Foundation; new text end

new text begin (5) $357,000 is for a grant to the Initiative Foundation; new text end

new text begin (6) $357,000 is for a grant to the Northland Foundation; and new text end

new text begin (7) $357,000 is for a grant for the Minnesota emerging entrepreneur program under Minnesota Statutes, chapter 116M. Funds available under this clause must be allocated as follows: new text end

new text begin (i) 50 percent of the funds must be allocated for projects in the counties of Dakota, Ramsey, and Washington; and new text end

new text begin (ii) 50 percent of the funds must be allocated for projects in the counties of Anoka, Carver, Hennepin, and Scott. new text end

new text begin (i) $600,000 in fiscal year 2017 is for a grant to a city of the second class that is designated as an economically depressed area by the United States Department of Commerce for economic development, redevelopment, and job creation programs and projects. This is a onetime appropriation and is available until June 30, 2019. new text end

new text begin (j) $4,500,000 in fiscal year 2017 is for a grant to the Minnesota Film and TV Board for the film production jobs program under Minnesota Statutes, section 116U.26. This appropriation is in addition to the appropriation in Laws 2015, First Special Session chapter 1, article 1, section 2, subdivision 2. This is a onetime appropriation. new text end

new text begin (k) $3,651,000 in fiscal year 2017 is from the general fund for a grant to Mille Lacs County to develop and operate the Lake Mille Lacs area economic relief program established in section 45. This is a onetime appropriation. new text end

new text begin (l) $500,000 in fiscal year 2017 is from the general fund for grants to local communities outside of the metropolitan area as defined under Minnesota Statutes, section 473.121, subdivision 2, to increase the supply of quality child care providers in order to support regional economic development. Grant recipients must match state funds on a dollar-for-dollar basis. Grant funds available under this section must be used to implement solutions to reduce the child care shortage in the state, including but not limited to funding for child care business start-up or expansion, training, facility modifications or improvements required for licensing, and assistance with licensing and other regulatory requirements. In awarding grants, the commissioner must give priority to communities in greater Minnesota that have documented a shortage of child care providers in the area. This is a onetime appropriation and is available until June 30, 2019. new text end

new text begin By September 30, 2017, grant recipients must report to the commissioner on the outcomes of the grant program, including but not limited to the number of new providers, the number of additional child care provider jobs created, the number of additional child care slots, and the amount of local funds invested. new text end

new text begin By January 1, 2018, the commissioner must report to the standing committees of the legislature having jurisdiction over child care and economic development on the outcomes of the program to date. new text end

new text begin (m) $100,000 in fiscal year 2017 is from the general fund for a grant to the city of Madelia to provide match funding for a federal Economic Development Agency technical assistance grant. This is a onetime appropriation. new text end

new text begin (n) $10,000,000 in fiscal year 2017 is for deposit in the Minnesota 21st century fund. This is a onetime appropriation. new text end

new text begin (o) $400,000 in fiscal year 2017 is from the workforce development fund for grants to small business development centers under Minnesota Statutes, section 116J.68. Funds made available under this section may be used to match funds under the federal Small Business Development Center (SBDC) program under United States Code, title 15, section 648, provide consulting and technical services, or to build additional SBDC network capacity to serve entrepreneurs and small businesses. The commissioner shall allocate funds equally among the nine regional centers and lead center. This is a onetime appropriation. new text end

new text begin (p) $2,600,000 in fiscal year 2017 is for a transfer to the Board of Regents of the University of Minnesota for academic and applied research through MnDRIVE at the Natural Resources Research Institute to develop new technologies that enhance the long-term viability of the Minnesota mining industry. The research must be done in consultation with the Mineral Coordinating Committee established by Minnesota Statutes, section 93.0015. This is a onetime transfer. new text end

new text begin (q) Of the amount appropriated in fiscal year 2017 for the Minnesota Investment Fund in Laws 2015, First Special Session chapter 1, article 1, section 2, subdivision 2, paragraph (a), $450,000 is for a grant to the Lake Superior-Poplar River Water District to acquire interests in real property, engineer, design, permit, and construct infrastructure to transport and treat water from Lake Superior through the Poplar River Valley to serve domestic, irrigation, commercial, stock watering, and industrial water users. This grant does not require a local match. This is a onetime appropriation. This amount is available until June 30, 2019. new text end

new text begin Subd. 3. new text end

new text begin Workforce Development new text end

new text begin -0- new text end new text begin 1,900,000 new text end

new text begin This appropriation is from the workforce development fund. new text end

new text begin (a) $500,000 in fiscal year 2017 is from the workforce development fund for rural career counseling coordinators in the workforce service areas and for the purposes specified in Minnesota Statutes, section 116L.667. This appropriation is for increases to existing applicants who were awarded grants in fiscal years 2016 and 2017. new text end

new text begin (b) $500,000 in fiscal year 2017 is from the workforce development fund for a grant to Occupational Development Corporation, Inc. in the city of Buhl to provide training and employment opportunities for people with disabilities and disadvantaged workers. This is a onetime appropriation. new text end

new text begin (c) $400,000 in fiscal year 2017 is from the workforce development fund for a grant to Northern Bedrock Historic Preservation Corps for the pathway to the preservation trades program for recruitment of corps members, engagement of technical specialists, development of a certificate program, and skill development in historic preservation for youth ages 18 to 25. This is a onetime appropriation. new text end

new text begin (d) $500,000 in fiscal year 2017 is from the workforce development fund for a grant to the North East Higher Education District to purchase equipment for training programs due to increased demand for job training under the state dislocated worker program. This is a onetime appropriation and is available until June 30, 2018. new text end

new text begin Subd. 4. new text end

new text begin Vocational rehabilitation new text end

new text begin -0- new text end new text begin 1,800,000 new text end

new text begin This appropriation is from the workforce development fund. new text end

new text begin (a) $800,000 in fiscal year 2017 is from the workforce development fund for grants to day training and habilitation providers to provide innovative employment options and to advance community integration for persons with disabilities as required under the Minnesota Olmstead Plan. Eligible day training and habilitation providers are those who certify that they do not possess a certification as provided by section 14(c) of the Fair Labor Standards Act. Of this amount, $250,000 is for a pilot program for home-based, technology-enhanced monitoring of persons with disabilities. This is a onetime appropriation and is available until June 30, 2018. new text end

new text begin (b) $1,000,000 in fiscal year 2017 is from the workforce development fund for rate increases to providers of extended employment services for persons with severe disabilities under Minnesota Statutes, section 268A.15. This is a onetime appropriation. new text end

Sec. 3.

new text begin DEPARTMENT OF LABOR AND INDUSTRY new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 350,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin 100,000 new text end
new text begin Workforce Development new text end new text begin 250,000 new text end

new text begin (a) $250,000 in fiscal year 2017 is from the workforce development fund for the apprenticeship program under Minnesota Statutes, chapter 178. This amount is added to the base appropriation for this purpose. new text end

new text begin (b) $100,000 in fiscal year 2017 is to provide outreach and education concerning requirements under state or federal law governing removal of architectural barriers that limit access to public accommodations by persons with disabilities and resources that are available to comply with those requirements. This is a onetime appropriation. new text end

Sec. 4.

new text begin EXPLORE MINNESOTA TOURISM new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 1,073,000 new text end

new text begin (a) $300,000 in fiscal year 2017 is for a grant to the Mille Lacs Tourism Council to enhance marketing activities related to tourism promotion in the Mille Lacs Lake area. This is a onetime appropriation. new text end

new text begin (b) $773,000 in fiscal year 2017 is to establish a pilot project to assist in funding and securing major events benefiting communities throughout the state. The pilot project must measure the economic impact of visitors on state and local economies, increased lodging and nonlodging sales taxes in addition to visitor spending, and increased media awareness of the state as an event destination. This is a onetime appropriation. Of this amount, $100,000 is for a grant to the St. Louis County Historical Society for a project, in collaboration with the Erie Mining history book project team, to research, document, publish, preserve, and exhibit the history of taconite mining in Minnesota. new text end

Sec. 5.

new text begin HOUSING FINANCE AGENCY new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 1,750,000 new text end

new text begin (a) $500,000 in fiscal year 2017 is to establish a grant program within the housing trust fund for the exploited families rental assistance program. This is a onetime appropriation and is available until June 30, 2019. new text end

new text begin (b) $500,000 in fiscal year 2017 is for a competitive grant program to fund a housing project or projects in a community or communities: (1) that have low housing vacancy rates; and (2) that have an education and training center for jobs in agriculture, farm business management, health care fields, or other fields with anticipated significant job growth potential. A grant or grants must be no more than 50 percent of the total development costs for the project. Funds for a grant or grants made in this section must be to a housing project or projects that have financial and in-kind contributions from nonagency sources that when combined with a grant under this section are sufficient to complete the housing project. Funds must be used to create new housing units either through new construction or through acquisition and rehabilitation of a building or buildings not currently used for housing. If funds remain uncommitted at the end of fiscal year 2017, the agency may transfer the uncommitted funds to the housing development fund and use the funds for the economic development and housing challenge program under Minnesota Statutes, section 462A.33. This is a onetime appropriation. new text end

new text begin (c) $750,000 in fiscal year 2017 is for the Workforce and Affordable Homeownership Development Program under Minnesota Statutes, section 462A.38. This is a onetime appropriation and is available until June 30, 2019. new text end

Sec. 6.

new text begin COMMERCE new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 1,332,000 new text end

new text begin (a) $832,000 in fiscal year 2017 is for energy regulation and planning unit staff. new text end

new text begin (b) $500,000 in fiscal year 2017 is for additional actuarial work to prepare for implementation of principle-based reserves. This appropriation is contingent on enactment of 2016 HF No. 3384. The base appropriation for this purpose is $412,000. new text end

Sec. 7.

new text begin PUBLIC UTILITIES COMMISSION new text end

new text begin $ new text end new text begin 225,000 new text end new text begin $ new text end new text begin 577,000 new text end

new text begin The amounts appropriated are in addition to those appropriated in Laws 2015, First Special Session chapter 1. The base amount for fiscal year 2018 and thereafter is $514,000. new text end

Sec. 8.

Laws 2014, chapter 312, article 2, section 14, is amended to read:

Sec. 14.

ASSIGNED RISK TRANSFER.

(a) By June 30, 2015, if the commissioner of commerce determines on the basis of an audit that there is an excess surplus in the assigned risk plan created under Minnesota Statutes, section 79.252, the commissioner of management and budget shall transfer the amount of the excess surplus, not to exceed $10,500,000, to the general fund. This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, paragraph (a), clause (1). This is a onetime transfer.

(b) By June 30, 2015, and each year thereafter, if the commissioner of commerce determines on the basis of an audit that there is an excess surplus in the assigned risk plan created under Minnesota Statutes, section 79.252, the commissioner of management and budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each year, to the Minnesota minerals 21st century fund under Minnesota Statutes, section 116J.423. This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, paragraph (a), clause (1), but after the transfer authorized in paragraph (a). The total amount authorized for all transfers under this paragraph must not exceed $24,100,000. This paragraph expires the day following the transfer in which the total amount transferred under this paragraph to the Minnesota minerals 21st century fund equals $24,100,000.

(c) By June 30, 2015, if the commissioner of commerce determines on the basis of an audit that there is an excess surplus in the assigned risk plan created under Minnesota Statutes, section 79.252, the commissioner of management and budget shall transfer the amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If a transfer occurs under this paragraph, the amount transferred is appropriated from the general fund in fiscal year 2015 to the commissioner of labor and industry for the purposes of section 15. Both the transfer and appropriation under this paragraph are onetime.

(d) By June 30, 2016, if the commissioner of commerce determines on the basis of an audit that there is an excess surplus in the assigned risk plan created under Minnesota Statutes, section 79.252, the commissioner of management and budget shall transfer the amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If a transfer occurs under this paragraph, the amount transferred is appropriated from the general fund in fiscal year 2016 to the commissioner of labor and industry for the purposes of section 15. Both the transfer and appropriation under this paragraph are onetime.

(e) Notwithstanding Minnesota Statutes, section 16A.28, the commissioner of management and budget shall transfer to the deleted text begin assigned risk plan under Minnesota Statutes, section 79.252deleted text end new text begin general fundnew text end , any unencumbered or unexpended balance of the appropriations under paragraphs (c) and (d) remaining on June 30, deleted text begin 2017deleted text end new text begin 2016new text end , or the date the commissioner of commerce determines that an excess surplus in the assigned risk plan does not exist, whichever occurs earlier.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 9.

Laws 2014, chapter 312, article 2, section 15, is amended to read:

Sec. 15.

WORKERS' COMPENSATION SYSTEM REFORM; USE OF FUNDS.

(a) The appropriations under section 14 to the commissioner of labor and industry are for reform of the workers' compensation system. Funds appropriated under section 14, paragraphs (c) and (d), may be expended by the commissioner only after the advisory council on workers' compensation created under Minnesota Statutes, section 175.007, has approved a new system including, but not limited to: a Medicare-based diagnosis-related group (MS-DRG) or similar system for payment of workers' compensation inpatient hospital services. Of the amount appropriated under section 14, paragraphs (c) and (d), up to $100,000 may be used by the commissioner to develop and implement the new system approved by the advisory council on workers' compensation.

(b) Funds available for expenditure under paragraph (a) may be used by the commissioner for reimbursement of expenditures that are reasonable and necessary to defray the costs of the implementation by hospitals, insurers, and self-insured employers of the new system including, but not limited to: a Medicare-based diagnosis-related group (MS-DRG) or similar system for payment of workers' compensation inpatient hospital services, litigation expense reform, worker safety training, administrative costs, or other related system reform.

(c) For the purposes of this section, reasonable and necessary system reform and implementation costs include, but are not limited to:

(1) the cost of analyzing data to determine the anticipated costs and savings of implementing the new system;

(2) the cost of analyzing system or organizational changes necessary for implementation;

(3) the cost of determining how an organization would implement group or other software;

(4) the cost of upgrading existing software or purchasing new software and other technology upgrades needed for implementation;

(5) the cost of educating and training staff about the new system as applied to workers' compensation; and

(6) the cost of integrating the new system with electronic billing and remittance systems.

new text begin (d) This section expires June 30, 2016. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 10.

Laws 2015, First Special Session chapter 1, article 1, section 2, subdivision 3, is amended to read:

Subd. 3.

Workforce Development

Appropriations by Fund
General 2,189,000 1,789,000
Workforce Development 17,567,000 16,767,000

(a) $1,039,000 each year from the general fund and $3,104,000 each year from the workforce development fund are for the adult workforce development competitive grant program. Of this amount, up to five percent is for administration and monitoring of the adult workforce development competitive grant program. All grant awards shall be for two consecutive years. Grants shall be awarded in the first year.

(b) $4,050,000 each year is from the workforce development fund for the Minnesota youth program under Minnesota Statutes, sections 116L.56 and 116L.561, to provide employment and career advising to youth, including career guidance in secondary schools, to address the youth career advising deficiency, to carry out activities outlined in Minnesota Statutes, section 116L.561, to provide support services, and to provide work experience to youth in the workforce service areas. The funds in this paragraph may be used for expansion of the pilot program combining career and higher education advising in Laws 2013, chapter 85, article 3, section 27. Activities in workforce services areas under this paragraph may serve all youth up to age 24.

(c) $1,000,000 each year is from the workforce development fund for the youthbuild program under Minnesota Statutes, sections 116L.361 to 116L.366.

(d) $450,000 each year is from the workforce development fund for a grant to Minnesota Diversified Industries, Inc., to provide progressive development and employment opportunities for people with disabilities.

(e) $3,348,000 each year is from the workforce development fund for the "Youth at Work" youth workforce development competitive grant program. Of this amount, up to five percent is for administration and monitoring of the youth workforce development competitive grant program. All grant awards shall be for two consecutive years. Grants shall be awarded in the first year.

(f) $500,000 each year is from the workforce development fund for the Opportunities Industrialization Center programs.

(g) $750,000 each year is from the workforce development fund for a grant to the Minnesota Alliance of Boys and Girls Clubs to administer a statewide project of youth jobs skills development. This project, which may have career guidance components, including health and life skills, is to encourage, train, and assist youth in job-seeking skills, workplace orientation, and job-site knowledge through coaching. This grant requires a 25 percent match from nonstate resources.

(h) $250,000 the first year and $250,000 the second year are for pilot programs in the workforce service areas to combine career and higher education advising.

(i) $215,000 each year is from the workforce development fund for a grant to Big Brothers, Big Sisters of the Greater Twin Cities for workforce readiness, employment exploration, and skills development for youth ages 12 to 21. The grant must serve youth in the Twin Cities, Central Minnesota and Southern Minnesota Big Brothers, Big Sisters chapters.

(j) $900,000 in fiscal year 2016 and $1,100,000 in fiscal year 2017 are from the workforce development fund for a grant to the Minnesota High Tech Association to support SciTechsperience, a program that supports science, technology, engineering, and math (STEM) internship opportunities for two- and four-year college students in their field of study. The internship opportunities must match students with paid internships within STEM disciplines at small, for-profit companies located in the seven-county metropolitan area, having fewer than 150 total employees; or at small or medium, for-profit companies located outside of the seven-county metropolitan area, having fewer than 250 total employees. At least 200 students must be matched in the first year and at least 250 students must be matched in the second year. Selected hiring companies shall receive from the grant 50 percent of the wages paid to the intern, capped at $2,500 per intern. The program must work toward increasing the participation among women or other underserved populations.

(k) $50,000 each year is from the workforce development fund for a grant to the St. Cloud deleted text begin Areadeleted text end Somali deleted text begin Salvationdeleted text end new text begin Youthnew text end Organization for youth development and crime prevention activities. Grant funds may be used to train and place mentors in elementary and secondary schools; for athletic, social, and other activities to foster leadership development; to provide a safe place for participating youth to gather after school, on weekends, and on holidays; and activities to improve the organizational and job readiness skills of participating youth.new text begin This is a onetime appropriation and is available until June 30, 2019. Funds appropriated the first year are available for use in the second year of the biennium.new text end

(l) $500,000 each year is for rural career counseling coordinator positions in the workforce service areas and for the purposes specified in Minnesota Statutes, section 116L.667. The commissioner, in consultation with local workforce investment boards and local elected officials in each of the service areas receiving funds, shall develop a method of distributing funds to provide equitable services across workforce service areas.

(m) $400,000 in fiscal year 2016 is for a grant to YWCA Saint Paul for training and job placement assistance, including commercial driver's license training, through the job placement and retention program. This is a onetime appropriation.

(n) $800,000 in fiscal year 2016 is from the workforce development fund for the customized training program for manufacturing industries under article 2, section 24. This is a onetime appropriation and is available in either year of the biennium. Of this amount:

(1) $350,000 is for a grant to Central Lakes College for the purposes of this paragraph;

(2) $250,000 is for Minnesota West Community and Technical College for the purposes of this paragraph; and

(3) $200,000 is for South Central College for the purposes of this paragraph.

(o) $500,000 each year is from the workforce development fund for a grant to Resource, Inc. to provide low-income individuals career education and job skills training that are fully integrated with chemical and mental health services.

(p) $200,000 in fiscal year 2016 and $200,000 in fiscal year 2017 are from the workforce development fund for performance grants under Minnesota Statutes, section 116J.8747, to Twin Cities RISE! to provide training to hard-to-train individuals. This is a onetime appropriation.

(q) $200,000 in fiscal year 2016 is from the workforce development fund for the foreign-trained health care professionals grant program modeled after the pilot program conducted under Laws 2006, chapter 282, article 11, section 2, subdivision 12, to encourage state licensure of foreign-trained health care professionals, including: physicians, with preference given to primary care physicians who commit to practicing for at least five years after licensure in underserved areas of the state; nurses; dentists; pharmacists; mental health professionals; and other allied health care professionals. The commissioner must collaborate with health-related licensing boards and Minnesota workforce centers to award grants to foreign-trained health care professionals sufficient to cover the actual costs of taking a course to prepare health care professionals for required licensing examinations and the fee for the state licensing examinations. When awarding grants, the commissioner must consider the following factors:

(1) whether the recipient's training involves a medical specialty that is in high demand in one or more communities in the state;

(2) whether the recipient commits to practicing in a designated rural area or an underserved urban community, as defined in Minnesota Statutes, section 144.1501;

(3) whether the recipient's language skills provide an opportunity for needed health care access for underserved Minnesotans; and

(4) any additional criteria established by the commissioner.

This is a onetime appropriation and is available until June 30, 2019.

Sec. 11.

Laws 2015, First Special Session chapter 1, article 1, section 6, is amended to read:

Sec. 6.

BUREAU OF MEDIATION SERVICES

$ 2,208,000 $ deleted text begin 2,234,000 deleted text end
new text begin 2,622,000 new text end

(a) $68,000 each year is for grants to area labor management committees. Grants may be awarded for a 12-month period beginning July 1 each year. Any unencumbered balance remaining at the end of the first year does not cancel but is available for the second year.

(b) $125,000 each year is for purposes of the Public Employment Relations Board under Minnesota Statutes, section 179A.041.

(c) $256,000 deleted text begin each year isdeleted text end new text begin in fiscal year 2016 and $394,000 in fiscal year 2017 arenew text end for the Office of Collaboration and Dispute Resolution under Minnesota Statutes, section 179.90. new text begin The base appropriation for this purpose is $394,000 in fiscal year 2018 and $394,000 in fiscal year 2019. new text end Of this amount, $160,000 each year is for grants under Minnesota Statutes, section 179.91, and $96,000 each year is for intergovernmental and public policy collaboration and operation of the office.

new text begin (d) $250,000 is to complete the Case Management System-Database Project Phase II. This is a onetime appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 12.

Minnesota Statutes 2014, section 61A.24, is amended by adding a subdivision to read:

new text begin Subd. 12b. new text end

new text begin Mortality table; exception. new text end

new text begin Notwithstanding subdivisions 12, 12a, or any other law to the contrary, a company may use the Commissioners 2017 Standard Ordinary Mortality Table in determining the minimum nonforfeiture standard for policies issued on or after January 1, 2017. new text end

Sec. 13.

Minnesota Statutes 2014, section 61A.25, is amended by adding a subdivision to read:

new text begin Subd. 15. new text end

new text begin Mortality table; exception. new text end

new text begin Notwithstanding anything in this section, or any other law to the contrary, a company may use the Commissioners 2017 Standard Ordinary Mortality Table in determining the minimum valuation standard for policies issued on or after January 1, 2017. new text end

Sec. 14.

Minnesota Statutes 2014, section 116J.423, is amended to read:

116J.423 MINNESOTA deleted text begin MINERALSdeleted text end 21ST CENTURY FUND.

Subdivision 1.

Created.

The Minnesota deleted text begin mineralsdeleted text end 21st century fund is created as a separate account in the treasury. Money in the account is appropriated to the commissioner of employment and economic development for the purposes of this section. All money earned by the account, loan repayments of principal and interest, and earnings on investments must be credited to the account. For the purpose of this section, "fund" means the Minnesota deleted text begin mineralsdeleted text end 21st century fund. The commissioner shall operate the account as a revolving account.

Subd. 2.

Use of fund.

The commissioner shall use money in the fund to make loans or equity investments in mineralnew text begin , steel,new text end or deleted text begin taconitedeleted text end new text begin any other industry new text end processing deleted text begin facilitiesdeleted text end , deleted text begin steeldeleted text end production deleted text begin facilitiesdeleted text end , deleted text begin facilities for the manufacturing of renewable energy products, or facilities for the manufacturing of biobased or biomass products,deleted text end new text begin manufacturing, or technology project that would enhance the economic diversification new text end and that deleted text begin aredeleted text end new text begin is new text end located within the taconite relief tax area as defined under section 273.134. The commissioner must, prior to making any loans or equity investments and after consultation with industry and public officials, develop a strategy for making loans and equity investments that assists the deleted text begin Minnesota mineral industry in becoming globally competitivedeleted text end new text begin taconite relief area in retaining and enhancing its economic competitivenessnew text end . Money in the fund may also be used to pay for the costs of carrying out the commissioner's due diligence duties under this section.

Subd. 2a.

Grants authorized.

Notwithstanding subdivision 2, the commissioner may use money in the fund to make grants to a municipality or county, or to a county regional rail authority as appropriate, for public infrastructure needed to support an eligible project under this section. Grant money may be used by the municipality, county, or regional rail authority to acquire right-of-way and mitigate loss of wetlands and runoff of storm water; to predesign, design, construct, and equip roads and rail lines; and, in cooperation with municipal utilities, to predesign, design, construct, and equip natural gas pipelines, electric infrastructure, water supply systems, and wastewater collection and treatment systems. Grants made under this subdivision are available until expended.

Subd. 3.

Requirements prior to committing funds.

The commissioner, prior to making a commitment for a loan or equity investment must, at a minimum, conduct due diligence research regarding the proposed loan or equity investment, including contracting with professionals as needed to assist in the due diligence.

Subd. 4.

Requirements for fund disbursements.

The commissioner may make conditional commitments for loans or equity investments but disbursements of funds pursuant to a commitment may not be made until commitments for the remainder of a project's funding are made that are satisfactory to the commissioner and disbursements made from the other commitments sufficient to protect the interests of the state in its loan or investment.

Subd. 5.

Company contribution.

The commissioner may provide loans or equity investments that match, in a proportion determined by the commissioner, an investment made by the owner of a facility.

Sec. 15.

Minnesota Statutes 2014, section 116J.424, is amended to read:

116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD CONTRIBUTION.

The commissioner of the Iron Range Resources and Rehabilitation Board with approval by the board, deleted text begin shalldeleted text end new text begin may new text end provide an equal match for any loan or equity investment made for a deleted text begin facilitydeleted text end new text begin project new text end located in the tax relief area defined in section 273.134, paragraph (b), by the Minnesota deleted text begin mineralsdeleted text end 21st century fund created by section 116J.423. The match may be in the form of a loan or equity investment, notwithstanding whether the fund makes a loan or equity investment. The state shall not acquire an equity interest because of an equity investment or loan by the board and the board at its sole discretion shall decide what interest it acquires in a project. The commissioner of employment and economic development may require a commitment from the board to make the match prior to disbursing money from the fund.

Sec. 16.

Minnesota Statutes 2014, section 116J.431, subdivision 1, is amended to read:

Subdivision 1.

Grant program established; purpose.

(a) The commissioner shall make grants to counties or cities to provide up to 50 percent of the capital costs of public infrastructure necessary for an eligible economic development project. The county or city receiving a grant must provide for the remainder of the costs of the project, either in cash or in kind. In-kind contributions may include the value of site preparation other than the public infrastructure needed for the project.

(b) The purpose of the grants made under this section is to keep or enhance jobs in the area, increase the tax base, or to expand or create new economic development.

new text begin (c) In awarding grants under this section, the commissioner must adhere to the criteria under subdivision 4. new text end

new text begin (d) If the commissioner awards a grant for less than 50 percent of the project, the commissioner shall provide the applicant and the chairs and ranking minority members of the senate and house of representatives committees with jurisdiction over economic development finance a written explanation of the reason less than 50 percent of the capital costs were awarded in the grant. new text end

Sec. 17.

Minnesota Statutes 2014, section 116J.431, subdivision 2, is amended to read:

Subd. 2.

Eligible projects.

An economic development project for which a county or city may be eligible to receive a grant under this section includes:

(1) manufacturing;

(2) technology;

(3) warehousing and distribution;

(4) research and development;

(5) agricultural processing, defined as transforming, packaging, sorting, or grading livestock or livestock products into goods that are used for intermediate or final consumption, including goods for nonfood use; or

(6) industrial park development that would be used by any other business listed in this subdivisionnew text begin even if no business has committed to locate in the industrial park at the time the grant application is madenew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 18.

Minnesota Statutes 2014, section 116J.431, subdivision 4, is amended to read:

Subd. 4.

Application.

(a) The commissioner must develop forms and procedures for soliciting and reviewing applications for grants under this section. At a minimum, a county or city must include in its application a resolution of the county or city council certifying that the required local match is available. The commissioner must evaluate complete applications for eligible projects using the following criteria:

(1) the project is an eligible project as defined under subdivision 2;

(2) the project deleted text begin willdeleted text end new text begin is expected to new text end result innew text begin or will attractnew text end substantial public and private capital investment and provide substantial economic benefit to the county or city in which the project would be located;

(3) the project is not relocating substantially the same operation from another location in the state, unless the commissioner determines the project cannot be reasonably accommodated within the county or city in which the business is currently located, or the business would otherwise relocate to another state; and

(4) the project new text begin is expected to or new text end will create or deleted text begin maintaindeleted text end new text begin retainnew text end full-time jobs.

(b) The determination of whether to make a grant for a site is within the discretion of the commissioner, subject to this section. The commissioner's decisions and application of the deleted text begin prioritiesdeleted text end new text begin criterianew text end are not subject to judicial review, except for abuse of discretion.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 19.

Minnesota Statutes 2014, section 116J.431, subdivision 6, is amended to read:

Subd. 6.

Maximum grant amount.

A county or city may receive no more than deleted text begin $1,000,000deleted text end new text begin $2,000,000new text end in two years for one or more projects.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 20.

Minnesota Statutes 2014, section 116J.68, is amended to read:

116J.68 BUREAU OF SMALL BUSINESS.

Subdivision 1.

Generally.

The Bureau of Small Business within the business assistance center shall serve as a clearinghousenew text begin , technical assistance center,new text end and referral service for information new text begin and other assistance new text end needed by small businesses including small targeted group businesses and small businesses located in an economically disadvantaged area.

Subd. 2.

Duties.

The bureau shall:

(1) provide information and assistance with respect to all aspects of business planningnew text begin , business finance,new text end and business management related to the start-up, operation, or expansion of a small business in Minnesota;

(2) refer persons interested in the start-up, operation, or expansion of a small business in Minnesota to assistance programs sponsored by federal agencies, state agencies, educational institutions, chambers of commerce, civic organizations, community development groups, private industry associations, and other organizations;

(3) plan, develop, and implement a master file of information on small business assistance programs of federal, state, and local governments, and other public and private organizations so as to provide comprehensive, timely information to the bureau's clients;

(4) employ staff with adequate and appropriate skills and education and training for the delivery of information and assistance;

(5) seek out and utilize, to the extent practicable, contributed expertise and services of federal, state, and local governments, educational institutions, and other public and private organizations;

(6) maintain a close and continued relationship with the director of the procurement program within the Department of Administration so as to facilitate the department's duties and responsibilities under sections 16C.16 to 16C.19 relating to the small targeted group business and economically disadvantaged business program of the state;

(7) develop an information system which will enable the commissioner and other state agencies to efficiently store, retrieve, analyze, and exchange data regarding small business development and growth in the state. All executive branch agencies of state government and the secretary of state shall to the extent practicable, assist the bureau in the development and implementation of the information system;

(8) establish and maintain a toll-free telephone numbernew text begin , e-mail account, and other electronic contact mediums determined by the commissionernew text end so that all small business persons anywhere in the state deleted text begin can calldeleted text end new text begin may contactnew text end the bureau office for assistance. An outreach program shall be established to make the existence of the bureau new text begin and the assistance and services the bureau may provide to small businesses new text end well known to its potential clientele throughout the state. If the small business person requires a referral to another provider the bureau may use the business assistance referral system established by the Minnesota Project Outreach Corporation;

(9) conduct research and provide data as required by the state legislature;

(10) develop and publish material on all aspects of the start-up, operation, or expansion of a small business in Minnesota;

(11) collect and disseminate information on state procurement opportunities, including information on the procurement process;

(12) develop a public awareness program deleted text begin through the use ofdeleted text end new text begin regarding state assistance programs for small businesses, including those programs specifically for socially disadvantaged small business persons. The commissioner may utilize print and electronicnew text end newsletters, personal contacts, deleted text begin anddeleted text end new text begin advertising devices as defined in section 173.02, subdivision 16, social media, othernew text end electronic and print news media advertising deleted text begin about state assistance programs for small businesses, including those programs specifically for socially disadvantaged small business personsdeleted text end new text begin , and any other means determined by the commissionernew text end ;

(13) enter into agreements with the federal government and other public and private entities to serve as the statewide coordinator or host agency for the federal small business development center program under United States Code, title 15, section 648; and

(14) assist providers in the evaluation of their programs and the assessment of their service area needs. The bureau may establish model evaluation techniques and performance standards for providers to use.

Sec. 21.

Minnesota Statutes 2014, section 116J.8737, subdivision 3, is amended to read:

Subd. 3.

Certification of qualified investors.

(a) Investors may apply to the commissioner for certification as a qualified investor for a taxable year. The application must be in the form and be made under the procedures specified by the commissioner, accompanied by an application fee of $350. Application fees are deposited in the small business investment tax credit administration account in the special revenue fund. The application for certification for 2010 must be made available on the department's Web site by August 1, 2010. Applications for subsequent years' certification must be made available on the department's Web site by November 1 of the preceding year.

(b) Within 30 days of receiving an application for certification under this subdivision, the commissioner must either certify the investor as satisfying the conditions required of a qualified investor, request additional information from the investor, or reject the application for certification. If the commissioner requests additional information from the investor, the commissioner must either certify the investor or reject the application within 30 days of receiving the additional information. If the commissioner neither certifies the investor nor rejects the application within 30 days of receiving the original application or within 30 days of receiving the additional information requested, whichever is later, then the application is deemed rejected, and the commissioner must refund the $350 application fee. An investor who applies for certification and is rejected may reapply.

(c) To receive certification, an investor must (1) be a natural person; and (2) certify to the commissioner that the investor will only invest in a transaction that is exempt under section 80A.46, clause (13) or (14), new text begin in a security exempt under section 80A.461, new text end or in a security registered under section 80A.50, paragraph (b).

(d) In order for a qualified investment in a qualified small business to be eligible for tax credits, a qualified investor who makes the investment must have applied for and received certification for the calendar year prior to making the qualified investment, except in the case of an investor who is not an accredited investor, within the meaning of Regulation D of the Securities and Exchange Commission, Code of Federal Regulations, title 17, section 230.501, paragraph (a), application for certification may be made within 30 days after making the qualified investment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December 31, 2015. new text end

Sec. 22.

Minnesota Statutes 2014, section 116J.8747, subdivision 1, is amended to read:

Subdivision 1.

Grant allowed.

The commissioner may provide a grant to a qualified job training program from money appropriated for the purposes of this section as follows:

(1) deleted text begin a $9,000deleted text end new text begin an $11,000 new text end placement grant paid to a job training program upon placement in employment of a qualified graduate of the program; and

(2) deleted text begin a $9,000deleted text end new text begin an $11,000 new text end retention grant paid to a job training program upon retention in employment of a qualified graduate of the program for at least one year.

Sec. 23.

Minnesota Statutes 2014, section 116J.8747, subdivision 2, is amended to read:

Subd. 2.

Qualified job training program.

To qualify for grants under this section, a job training program must satisfy the following requirements:

(1) the program must be operated by a nonprofit corporation that qualifies under section 501(c)(3) of the Internal Revenue Code;

(2) the program must spend deleted text begin at leastdeleted text end new text begin , on average,new text end $15,000 new text begin or more new text end per graduate of the program;

(3) the program must provide education and training in:

(i) basic skills, such as reading, writing, mathematics, and communications;

(ii) thinking skills, such as reasoning, creative thinking, decision making, and problem solving; and

(iii) personal qualities, such as responsibility, self-esteem, self-management, honesty, and integrity;

(4) the program deleted text begin mustdeleted text end new text begin may new text end provide income supplements, when needed, to participants for housing, counseling, tuition, and other basic needs;

(5) the program's education and training course must last for an average of at least six months;

(6) individuals served by the program must:

(i) be 18 years of age or older;

(ii) have federal adjusted gross income of no more than deleted text begin $11,000deleted text end new text begin $12,000 new text end per year in the calendar year immediately before entering the program;

(iii) have assets of no more than deleted text begin $7,000deleted text end new text begin $10,000new text end , excluding the value of a homestead; and

(iv) not have been claimed as a dependent on the federal tax return of another person in the previous taxable year; and

(7) the program must be certified by the commissioner of employment and economic development as meeting the requirements of this subdivision.

Sec. 24.

Minnesota Statutes 2014, section 116M.14, subdivision 2, is amended to read:

Subd. 2.

Board.

"Board" means the deleted text begin Urban Initiative Board.deleted text end new text begin Minnesota emerging entrepreneur program.new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 25.

Minnesota Statutes 2014, section 116M.14, is amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Department. new text end

new text begin "Department" means the Department of Employment and Economic Development. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 26.

Minnesota Statutes 2014, section 116M.14, subdivision 4, is amended to read:

Subd. 4.

Low-income area.

"Low-income area" means:

(1) Minneapolis, St. Paul;

(2) those cities in the metropolitan area as defined in section 473.121, subdivision 2, that have an average income that is below 80 percent of the median income for a four-person family as of the latest report by the United States Census Bureau; and

(3) deleted text begin those cities in the metropolitan area, which contain two or more contiguous census tracts in which the average family income is less than 80 percent of the median family income for the Twin Citiesdeleted text end new text begin the area outside the new text end metropolitan area.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 27.

Minnesota Statutes 2014, section 116M.14, is amended by adding a subdivision to read:

new text begin Subd. 4a. new text end

new text begin Low-income person. new text end

new text begin "Low-income person" means a person who has an annual income, adjusted for family size, of not more than 80 percent of the area median family income for the county of residence as of the latest report by the United States Census Bureau. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 28.

Minnesota Statutes 2014, section 116M.14, is amended by adding a subdivision to read:

new text begin Subd. 4b. new text end

new text begin Metropolitan area. new text end

new text begin "Metropolitan area" has the meaning given in section 473.121, subdivision 2. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 29.

Minnesota Statutes 2014, section 116M.14, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Minority person. new text end

new text begin "Minority person" means a person belonging to a racial or ethnic minority as defined in Code of Federal Regulations, title 49, section 23.5. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 30.

Minnesota Statutes 2014, section 116M.14, is amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Program. new text end

new text begin "Program" means the Minnesota emerging entrepreneur program created by this chapter. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 31.

Minnesota Statutes 2014, section 116M.14, is amended by adding a subdivision to read:

new text begin Subd. 8. new text end

new text begin Veteran. new text end

new text begin "Veteran" means a veteran as defined in section 197.447. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 32.

Minnesota Statutes 2014, section 116M.14, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Persons with disabilities. new text end

new text begin "Persons with disabilities" means an individual with a disability, as defined under the Americans with Disabilities Act, United States Code, title 42, section 12102. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 33.

Minnesota Statutes 2014, section 116M.15, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Creation;deleted text end Membership.

The deleted text begin Urban Initiativedeleted text end new text begin Minnesota Emerging Entrepreneur new text end Board is created and consists of the commissioner of employment and economic development, new text begin the commissioner of human rights, new text end the chair of the Metropolitan Council, and deleted text begin eightdeleted text end new text begin 12 new text end members from the general public appointed by the governor. deleted text begin Sixdeleted text end new text begin Nine new text end of the public members must be representatives from minority business enterprises. No more than deleted text begin fourdeleted text end new text begin six new text end of the public members may be of one gender. new text begin At least one member must be a representative from a veteran-owned business, and at least one member must be a representative from a business owned by a person with disabilities. Appointments must ensure balanced geographic representation. At least half of the public members must have experience working to address racial income disparities. new text end All public members must be experienced in business or economic development.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 34.

Minnesota Statutes 2014, section 116M.15, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Board responsibilities. new text end

new text begin The board shall: new text end

new text begin (1) submit a report to the commissioner by February 1 of each year describing the condition of Minnesota small businesses that are majority owned and operated by a racial or ethnic minority, woman, veteran, or a person with disabilities, along with any policy recommendations; new text end

new text begin (2) act as a liaison between the department and nonprofit corporations engaged in small business development support activities; and new text end

new text begin (3) assist the department in informational outreach about the program. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 35.

Minnesota Statutes 2014, section 116M.17, subdivision 2, is amended to read:

Subd. 2.

Technical assistance.

The deleted text begin board through thedeleted text end departmentdeleted text begin ,deleted text end shall provide technical assistance and deleted text begin development information services to state agencies, regional agencies, special districts, local governments, and the public, with special emphasis on minority communitiesdeleted text end new text begin informational outreach about the program to lenders, nonprofit corporations, and low-income and minority communities throughout the state that support the development of business enterprises and entrepreneursnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 36.

Minnesota Statutes 2014, section 116M.17, subdivision 4, is amended to read:

Subd. 4.

Reports.

The board shall submit an annual report to the legislature of an accounting of loans made under section 116M.18, including information on loans deleted text begin to minority business enterprisesdeleted text end new text begin madenew text end , new text begin the number of jobs created by the program, new text end the impact on low-income areas, and recommendations concerning minority business development and jobs for persons in low-income areas.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 37.

Minnesota Statutes 2014, section 116M.18, is amended to read:

116M.18 deleted text begin URBAN CHALLENGE GRANTSdeleted text end new text begin MINNESOTA EMERGING ENTREPRENEUR new text end PROGRAM.

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Minnesota emerging entrepreneur program is established to award grants to nonprofit corporations to fund loans to businesses owned by minority or low-income persons, women, veterans, or people with disabilities. new text end

new text begin Subd. 1a. new text end

new text begin Statewide loans. new text end

new text begin To the extent there is sufficient eligible demand, loans shall be made so that an approximately equal dollar amount of loans are made to businesses in the metropolitan area as in the nonmetropolitan area. After September 30 of each calendar year, the department may allow loans to be made anywhere in the state without regard to geographic area. new text end

deleted text begin Subdivision 1deleted text end new text begin Subd. 1bnew text end .

deleted text begin Eligibility rulesdeleted text end new text begin Grantsnew text end .

The deleted text begin boarddeleted text end new text begin department new text end shall make deleted text begin urban challengedeleted text end grants deleted text begin for use in low-income areasdeleted text end to nonprofit corporationsnew text begin to fund loans to businesses owned by minority or low-income persons, women, veterans, or people with disabilities new text end to encourage private investment, to provide jobs for minoritynew text begin and low-incomenew text end persons deleted text begin and others in low-income areasdeleted text end , to create and strengthen minority business enterprises, and to promote economic development in a low-income area. deleted text begin The board shall adopt rules to establish criteria for determining loan eligibility.deleted text end

Subd. 2.

deleted text begin Challengedeleted text end Grant eligibility; nonprofit corporation.

new text begin (a) new text end The deleted text begin boarddeleted text end new text begin department new text end may enter into agreements with nonprofit corporations to fund deleted text begin and guaranteedeleted text end loans the nonprofit corporation makes deleted text begin in low-income areas under subdivision 4. A corporation must demonstrate thatdeleted text end new text begin to businesses owned by minority or low-income persons, women, veterans, or people with disabilities. The department shall evaluate applications from nonprofit corporations. In evaluating applications, the department must consider, among other things, whether the nonprofit corporationnew text end :

(1) deleted text begin itsdeleted text end new text begin has anew text end board of directors new text begin that new text end includes citizens experienced in new text begin business and community new text end development, minority business enterprises, new text begin addressing racial income disparities, new text end and creating jobs deleted text begin in low-income areasdeleted text end new text begin for low-income and minority personsnew text end ;

(2) deleted text begin itdeleted text end has the technical skills to analyze projects;

(3) deleted text begin itdeleted text end is familiar with other available public and private funding sources and economic development programs;

(4) deleted text begin itdeleted text end can initiate and implement economic development projects;

(5) deleted text begin itdeleted text end can establish and administer a revolving loan accountnew text begin or has operated a revolving loan accountnew text end ; deleted text begin anddeleted text end

(6) deleted text begin itdeleted text end can work with job referral networks which assist minority and deleted text begin other persons in low-income areasdeleted text end new text begin low-income persons; andnew text end

new text begin (7) has established relationships with minority communitiesnew text end .

new text begin (b) The department shall review existing agreements with nonprofit corporations every five years and may renew or terminate the agreement based on the review. In making its review, the department shall consider, among other criteria, the criteria in paragraph (a). new text end

Subd. 3.

Revolving loan fund.

(a) The deleted text begin boarddeleted text end new text begin department new text end shall establish a revolving loan fund to make grants to nonprofit corporations for the purpose of making loans deleted text begin and loan guaranteesdeleted text end to deleted text begin new and expandingdeleted text end businesses deleted text begin in a low-income area to promotedeleted text end new text begin owned by minority or low-income persons, women, veterans, or people with disabilities, and to supportnew text end minority business enterprises and job creation for minority and deleted text begin other persons in low-income areasdeleted text end new text begin low-income personsnew text end .

(b)new text begin Nonprofit corporations that receive grants from the department under the program must establish a commissioner-certified revolving loan fund for the purpose of making eligible loans.new text end

new text begin (c) new text end Eligible business enterprises include, but are not limited to, technologically innovative industries, value-added manufacturing, and information industries.

new text begin (d) new text end Loan applications given preliminary approval by the nonprofit corporation must be forwarded to the deleted text begin boarddeleted text end new text begin department new text end for approval. The commissioner must give final approval for each loan deleted text begin or loan guaranteedeleted text end made by the nonprofit corporation. The amount of the state funds contributed to any loan deleted text begin or loan guaranteedeleted text end may not exceed 50 percent of each loan.

Subd. 4.

Business loan criteria.

(a) The criteria in this subdivision apply to loans made deleted text begin or guaranteeddeleted text end by nonprofit corporations under the deleted text begin urban challenge grantdeleted text end program.

(b) Loans deleted text begin or guaranteesdeleted text end must be made to businesses that are not likely to undertake a project for which loans are sought without assistance from the deleted text begin urban challenge grant deleted text end program.

(c) A loan deleted text begin or guaranteedeleted text end must be used deleted text begin for a project designed to benefit persons in low-income areas through the creation of job or business opportunities for themdeleted text end new text begin to support a business owned by a minority or a low-income person, woman, veteran, or a person with disabilitiesnew text end . Priority must be given for loans to the lowest income areas.

(d) The minimum state contribution to a loan deleted text begin or guaranteedeleted text end is $5,000 and the maximum is $150,000.

(e) The state contribution must be matched by at least an equal amount of new private investment.

(f) A loan may not be used for a retail development project.

(g) The business must agree to work with job referral networks that focus on minoritynew text begin and low-incomenew text end applicants deleted text begin from low-income areasdeleted text end .

Subd. 4a.

Microenterprise loan.

deleted text begin Urban challengedeleted text end new text begin Program new text end grants may be used to make microenterprise loans to small, beginning businesses, including a sole proprietorship. Microenterprise loans are subject to this section except that:

(1) they may also be made to qualified retail businesses;

(2) they may be made for a minimum of deleted text begin $1,000deleted text end new text begin $5,000new text end and a maximum of deleted text begin $25,000 deleted text end new text begin $35,000new text end ; deleted text begin anddeleted text end

new text begin (3) in a low-income area, they may be made for a minimum of $5,000 and a maximum of $50,000; and new text end

deleted text begin (3)deleted text end new text begin (4)new text end they do not require a match.

Subd. 5.

Revolving fund administrationdeleted text begin ; rulesdeleted text end .

(a) The deleted text begin boarddeleted text end new text begin department new text end shall establish a minimum interest rate for loans or guarantees to ensure that necessary loan administration costs are covered.new text begin The interest rate charged by a nonprofit corporation for a loan under this subdivision must not exceed the Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the nonprofit corporation may charge a loan origination fee equal to or less than one percent of the loan value. The nonprofit corporation may retain the amount of the origination fee.new text end

(b) Loan repayment deleted text begin amounts equal to one-halfdeleted text end of deleted text begin thedeleted text end principal deleted text begin and interestdeleted text end must be deleted text begin deposited in a revolving fund created by the board for challenge grants. The remaining amount of the loan repayment may bedeleted text end new text begin paid to the department for deposit in the revolving loan fund. Loan interest payments must be new text end deposited in a revolving loan fund created by the nonprofit corporation originating the loan being repaid for further distributionnew text begin or usenew text end , consistent with the deleted text begin loandeleted text end criteria deleted text begin specified in subdivision 4deleted text end new text begin of this sectionnew text end .

(c) Administrative expenses of the deleted text begin board anddeleted text end nonprofit corporations with whom the deleted text begin boarddeleted text end new text begin department new text end enters into agreements deleted text begin under subdivision 2deleted text end , including expenses incurred by a nonprofit corporation in providing financial, technical, managerial, and marketing assistance to a business enterprise receiving a loan under subdivision 4, may be paid out of the interest earned on loans and out of interest earned on money invested by the state Board of Investment under section 116M.16, subdivision 2, as may be provided by the deleted text begin boarddeleted text end new text begin departmentnew text end .

deleted text begin Subd. 6. deleted text end

deleted text begin Rules. deleted text end

deleted text begin The board shall adopt rules to implement this section. deleted text end

deleted text begin Subd. 6a. deleted text end

deleted text begin Nonprofit corporation loans. deleted text end

deleted text begin The board may make loans to a nonprofit corporation with which it has entered into an agreement under subdivision 1 . These loans must be used to support a new or expanding business. This support may include such forms of financing as the sale of goods to the business on installment or deferred payments, lease purchase agreements, or royalty investments in the business. The interest rate charged by a nonprofit corporation for a loan under this subdivision must not exceed the Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the nonprofit corporation may charge a loan origination fee equal to or less than one percent of the loan value. The nonprofit corporation may retain the amount of the origination fee. The nonprofit corporation must provide at least an equal match to the loan received by the board. The maximum loan available to the nonprofit corporation under this subdivision is $50,000. Loans made to the nonprofit corporation under this subdivision may be made without interest. Repayments made by the nonprofit corporation must be deposited in the revolving fund created for urban initiative grants. deleted text end

Subd. 7.

Cooperation.

A nonprofit corporation that receives deleted text begin an urban challengedeleted text end new text begin a programnew text end grant shall cooperate with other organizations, including but not limited to, community development corporations, community action agencies, and the Minnesota small business development centers.

Subd. 8.

Reporting requirements.

A nonprofit corporation that receives a deleted text begin challengedeleted text end new text begin programnew text end grant shall:

(1) submit an annual report to the board new text begin and department new text end by deleted text begin Septemberdeleted text end new text begin Marchnew text end 30 of each year that includes a description of deleted text begin projectsdeleted text end new text begin businessesnew text end supported by the deleted text begin urban challengedeleted text end grant program, an account of loans made during the calendar year, the program's impact on minority business enterprises and job creation for minority persons and new text begin low-income new text end persons deleted text begin in low-income areasdeleted text end , the source and amount of money collected and distributed by the deleted text begin urban challenge grantdeleted text end program, the program's assets and liabilities, and an explanation of administrative expenses; and

(2) provide for an independent annual audit to be performed in accordance with generally accepted accounting practices and auditing standards and submit a copy of each annual audit report to the deleted text begin boarddeleted text end new text begin departmentnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 38.

Minnesota Statutes 2015 Supplement, section 326B.988, is amended to read:

326B.988 EXCEPTIONS.

(a) The provisions of sections 326B.95 to 326B.998 shall not apply to:

(1) boilers and pressure vessels in buildings occupied solely for residence purposes with accommodations for not more than five families;

(2) railroad locomotives operated by railroad companies for transportation purposes;

(3) air tanks installed on the right-of-way of railroads and used directly in the operation of trains;

(4) boilers and pressure vessels under the direct jurisdiction of the United States;

(5) unfired pressure vessels having an internal or external working pressure not exceeding 15 psig with no limit on size;

(6) pressure vessels used for storage of compressed air not exceeding five cubic feet in volume and equipped with an ASME code stamped safety valve set at a maximum of 100 psig;

(7) pressure vessels having an inside diameter not exceeding six inches;

(8) every vessel that contains water under pressure, including those containing air that serves only as a cushion, whose design pressure does not exceed 300 psig and whose design temperature does not exceed 210 degrees Fahrenheit;

(9) boiler or pressure vessels located on farms used solely for agricultural or horticultural purposes; for purposes of this section, boilers used for mint oil extraction are considered used for agricultural or horticultural purposes, provided that the owner or lessee complies with the inspection requirements contained in section 326B.958;

(10) tanks or cylinders used for storage or transfer of liquefied petroleum gases;

(11) unfired pressure vessels in petroleum refineries;

(12) an air tank or pressure vessel which is an integral part of a passenger motor bus, truck, or trailer;

(13) hot water heating and other hot liquid boilers not exceeding a heat input of 750,000 BTU per hour;

(14) hot water supply boilers (water heaters) not exceeding a heat input of 500,000 BTU per hour, a water temperature of 210 degrees Fahrenheit, a nominal water capacity of 120 gallons, or a pressure of 160 psig;

(15) a laundry and dry cleaning press not exceeding five cubic feet of steam volume;

(16) pressure vessels operated full of water or other liquid not materially more hazardous than water, if the vessel's contents' temperature does not exceed 210 degrees Fahrenheit or a pressure of 200 psig;

(17) steam-powered turbines at papermaking facilities which are powered by steam generated by steam facilities at a remote location;

(18) manually fired boilers for model locomotive, boat, tractor, stationary engine, or antique motor vehicles constructed or maintained only as a hobby for exhibition, educational or historical purposes and not for commercial use, if the boilers have an inside diameter of 12 inches or less, or a grate area of two square feet or less, and are equipped with an ASME stamped safety valve of adequate size, a water level indicator, and a pressure gauge;

(19) any pressure vessel used as an integral part of an electrical circuit breaker;

(20) pressure vessels used for the storage of refrigerant if they are built to ASME code specifications, registered with the national board, and equipped with an ASME code-stamped pressure-relieving device set no higher than the maximum allowable working pressure of the vessel. This does not include pressure vessels used in ammonia refrigeration systems;

(21) pressure vessels used for the storage of oxygen, nitrogen, helium, carbon dioxide, argon, nitrous oxide, or other medical gas, provided the vessel is constructed to ASME or Minnesota Department of Transportation specifications and equipped with an ASME code-stamped pressure-relieving device. The owner of the vessels shall perform annual visual inspections and planned maintenance on these vessels to ensure vessel integrity;

(22) pressure vessels used for the storage of compressed air for self-contained breathing apparatuses;

(23) hot water heating or other hot liquid boilers vented directly to the atmosphere; and

(24) pressure vessels used for the storage of compressed air not exceeding 1.5 cubic feet (11.22 gallons) in volume with a maximum allowable working pressure of 600 psi or less.

(b) An engineer's license is not required for hot water supply boilers.

(c) An engineer's license and annual inspection by the department is not required for boilers, steam cookers, steam kettles, steam sterilizers or other steam generators not exceeding 100,000 BTU per hour input, 25 kilowatt, and a pressure of 15 psig.

(d) Electric boilers not exceeding a maximum working pressure of 50 psig, maximum of 30 kilowatt input or three horsepower rating shall be inspected as pressure vessels and shall not require an engineer license to operate.

(e) Sawmills, located in a county with a population of less than 8,000 according to the last federal census and that utilize steam for the drying of lumber, are not required to meet the high pressure boiler attendance requirements set forth in Minnesota Rules, part 5225.1180, only if all of the following conditions are met:

(1) the owner complies with the inspection requirements under section 326B.958, and the licensing requirements under section 326B.972; and

(2) the boiler:

(i) is equipped with electronic control systems that are remotely operated but which require on-site manual reset of system faults;

(ii) is remotely monitored for log water levels, boiler pressure, and steam flow;

(iii) has automatic safety mechanisms built into the remote monitoring systems that send an alarm upon detection of a fault condition, and an on-site alarm that will sound upon detection of a fault condition and which may be heard at a distance of 500 feet;

(iv) has a water treatment program that is supervised by a third party water treatment company; and

(v) is attended on site by a licensed boiler operator at least two times in a 24-hour period. If the boiler is not attended more than twice in a 24-hour period, the period between checks must not be less than eight hours.

deleted text begin This paragraph expires August 1, 2016. deleted text end new text begin This paragraph expires the sooner of August 1, 2018, or upon the effective date of a rule regulating high pressure boiler attendance requirements at a sawmill described in this paragraph adopted after the effective date of this act. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 39.

Minnesota Statutes 2014, section 462A.204, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

The agency may establish a family homeless prevention and assistance program to assist families who are homeless or are at imminent risk of homelessness. The term "family" may include single individuals. The agency may make grants to develop and implement family homeless prevention and assistance projects under the program. For purposes of this section, "families" means families and persons deleted text begin under the age of 22deleted text end new text begin 24 years of age or youngernew text end .

Sec. 40.

Minnesota Statutes 2014, section 462A.204, subdivision 3, is amended to read:

Subd. 3.

Set aside.

At least one grant must be awarded in an area located outside of the metropolitan area. A county, a group of contiguous counties jointly acting together, new text begin a tribe, a group of tribes, new text end or a community-based nonprofit organization with a sponsoring resolution from each of the county boards of the counties located within its operating jurisdiction may apply for and receive grants for areas located outside the metropolitan area.

Sec. 41.

new text begin [462A.38] WORKFORCE AND AFFORDABLE HOMEOWNERSHIP DEVELOPMENT PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A workforce and affordable homeownership development program is established to award homeownership development grants to nonprofit organizations, cooperatives created under chapter 308A or 308B, and community land trusts created for the purposes outlined in section 462A.31, subdivision 1, for development of workforce and affordable homeownership projects. The purpose of the program is to increase the supply of workforce and affordable, owner-occupied multifamily or single-family housing throughout Minnesota. new text end

new text begin Subd. 2. new text end

new text begin Use of funds. new text end

new text begin (a) Grant funds awarded under this program may be used for: new text end

new text begin (1) development costs; new text end

new text begin (2) rehabilitation; new text end

new text begin (3) land development; and new text end

new text begin (4) residential housing, including storm shelters and related community facilities. new text end

new text begin (b) A project funded through the grant program shall serve households that meet the income limits as provided in section 462A.33, subdivision 5, unless a project is intended for the purpose outlined in section 462A.02, subdivision 6. new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin The commissioner shall develop forms and procedures for soliciting and reviewing applications for grants under this section. The commissioner shall consult with interested stakeholders when developing the guidelines and procedures for the program. In making grants, the commissioner shall establish semiannual application deadlines in which grants will be authorized from all or part of the available appropriations. new text end

new text begin Subd. 4. new text end

new text begin Awarding grants. new text end

new text begin Among comparable proposals, preference must be given to proposals that include contributions from nonstate resources for the greatest portion of the total development cost. new text end

new text begin Subd. 5. new text end

new text begin Statewide program. new text end

new text begin The agency shall attempt to make grants in approximately equal amounts to applicants outside and within the metropolitan area. new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin Beginning January 15, 2018, the commissioner must annually submit a report to the chairs and ranking minority members of the senate and house of representatives committees having jurisdiction over housing and workforce development specifying the projects that received grants under this section and the specific purposes for which the grant funds were used. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 42.

Laws 2014, chapter 211, section 13, as amended by Laws 2015, First Special Session chapter 1, article 7, section 1, is amended to read:

Sec. 13.

EFFECTIVE DATE.

Sections 1 to 3 and 6 to 11 are effective July 1, deleted text begin 2016deleted text end new text begin 2017new text end . Sections 4, 5, and 12 are effective July 1, 2014.

EFFECTIVE DATE.

This section is effective the day following final enactment. Until July 1, deleted text begin 2016deleted text end new text begin 2017new text end , any employee, employer, employee or employer organization, exclusive representative, or any other person or organization aggrieved by an unfair labor practice as defined in Minnesota Statutes, section 179A.13, may bring an action for injunctive relief and for damages caused by the unfair labor practice in the district court of the county in which the practice is alleged to have occurred.

Sec. 43.

Laws 2015, First Special Session chapter 1, article 1, section 4, is amended to read:

Sec. 4.

EXPLORE MINNESOTA TOURISM

$ 14,118,000 $ 14,248,000

(a) To develop maximum private sector involvement in tourism, $500,000 in fiscal year 2016 and $500,000 in fiscal year 2017 must be matched by Explore Minnesota Tourism from nonstate sources. Each $1 of state incentive must be matched with $6 of private sector funding. Cash match is defined as revenue to the state or documented cash expenditures directly expended to support Explore Minnesota Tourism programs. Up to one-half of the private sector contribution may be in-kind or soft match. The incentive in fiscal year 2016 shall be based on fiscal year 2015 private sector contributions. The incentive in fiscal year 2017 shall be based on fiscal year 2016 private sector contributions. This incentive is ongoing.new text begin Of this amount, $100,000 is for a grant to the Northern Lights International Music festival.new text end

(b) Funding for the marketing grants is available either year of the biennium. Unexpended grant funds from the first year are available in the second year.

(c) $30,000 in fiscal year 2016 is for Mille Lacs Lake tourism promotion. This is a onetime appropriation.

Sec. 44.

new text begin DAY TRAINING AND HABILITATION GRANT PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of employment and economic development shall establish a day training and habilitation grant program in fulfillment of the Olmstead Plan purpose of ensuring that people with disabilities have choices for competitive, meaningful, and sustained employment in the most integrated setting. new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have the meanings given them. new text end

new text begin (b) "Day training and habilitation providers" means those organizations whose names are listed as Department of Human Services providers in the Minnesota Department of Administration, Materials Management Division, ALP Manual, Appendix J, without regard to whether they are listed as approved vendors with the Minnesota Department of Employment and Economic Development, Division of Rehabilitation Services as a community rehabilitation provider, limited-use vendor, or center for independent living, and irrespective as to whether they are accredited by CARF International. new text end

new text begin (c) "Competitive employment" means full-time or part-time employment, with or without support, in an integrated setting in the community that pays at least minimum wage, as defined by the Fair Labor Standards Act, but not less than the customary wage and level of benefits paid by the employer for the same or similar work performed by workers without a disability. new text end

new text begin (d) "Olmstead Plan" means Minnesota's 2013 Olmstead Plan, dated November 1, 2013, and all subsequent modifications approved by the United States District Court. new text end

new text begin Subd. 3. new text end

new text begin Competitive process. new text end

new text begin The commissioner shall issue a request for proposals to day training and habilitation providers seeking proposals to assist the Department of Employment and Economic Development in achieving its goals as provided in the Olmstead Plan. Grant funds shall be used to improve individual employment outcomes by aligning programs, funding, and policies to support people with disabilities to choose, secure, and maintain competitive employment and self-employment, including, but not limited to, the following activities: new text end

new text begin (1) implementing policies and initiating processes that improve the employment outcomes of working adults with disabilities; new text end

new text begin (2) offering incentives for innovation that increase competitive employment in the general work force; new text end

new text begin (3) expanding the flexibility in current funding and services to increase competitive employment outcomes; new text end

new text begin (4) providing evidence of partnerships with private sector businesses and public sector employment; and new text end

new text begin (5) submitting outcome data, required by the department, according to the stipulations of the Olmstead Plan. new text end

new text begin Subd. 4. new text end

new text begin Eligibility. new text end

new text begin Any person who has a disability as determined by the Social Security Administration or state medical review team is eligible to receive services provided with grant funds. new text end

new text begin Subd. 5. new text end

new text begin Consultation required. new text end

new text begin The commissioner shall consult with the governor's Workforce Development Council, the Commission of Deaf, DeafBlind, and Hard-of-Hearing Minnesotans, the governor's Council on Developmental Disabilities, and other governor-appointed disability councils in designing, implementing, and evaluating the competitive grant program. new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin On or before February 1, 2017, and annually thereafter, the commissioner shall report to the chairs and ranking minority members of the senate and house of representatives committees having jurisdiction over employment and economic development policy and finance on the amount of funds awarded and the outcomes reported by grantees. new text end

Sec. 45.

new text begin EXPLOITED FAMILIES RENTAL ASSISTANCE PILOT PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Rental assistance program. new text end

new text begin (a) The commissioner of housing finance shall establish a grant pilot program within the housing trust fund to serve individuals or families from emerging communities at risk of being homeless and who have been victims of gender-based violence, including but not limited to domestic violence, sexual assault, trafficking, international abusive marriage, or forced marriage. For the purposes of this section, the term "emerging communities" is defined as communities that are unfamiliar with mainstream government services and that have limited English proficiency. The commissioner shall award grants to organizations that can provide or partner with an organization that can provide linguistically and culturally appropriate services and that have the capacity to serve individuals or families from emerging communities who have experienced gender-based violence. The commissioner may consult with the Departments of Human Services and Public Safety when establishing the grant program. new text end

new text begin (b) The pilot program must: new text end

new text begin (1) provide rental assistance to individuals or families with a minor child; new text end

new text begin (2) require the participants to pay at least 30 percent of the participant's income toward the rent; new text end

new text begin (3) allow the families to choose their own housing, including single-family homes, townhomes, and apartments; and new text end

new text begin (4) give priority to individuals or families who experience barriers in accessing housing, including having limited English proficiency, lack of positive rental history, employment history, and financial history. new text end

new text begin Subd. 2. new text end

new text begin Program evaluation. new text end

new text begin All grant recipients must collect and make available to the commissioner of housing finance aggregate data to assist the agency in the evaluation of the program. The commissioner of housing finance shall evaluate the program and measure the number of families served from emerging communities and the housing status of the participants. new text end

Sec. 46.

new text begin LAKE MILLE LACS AREA ECONOMIC RELIEF PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Relief program established. new text end

new text begin Mille Lacs County must develop and implement a Lake Mille Lacs area economic relief program to assist businesses adversely affected by a decline in walleye fishing on Lake Mille Lacs. new text end

new text begin Subd. 2. new text end

new text begin Available relief. new text end

new text begin (a) The economic relief program established under this section may include grants or loans as provided in this section to the extent that funds are available. Prior to awarding a grant to Mille Lacs County for the relief program under this section: new text end

new text begin (1) the county must develop criteria, procedures, and requirements for: new text end

new text begin (i) determining eligibility for assistance; new text end

new text begin (ii) the duration, terms, underwriting and security requirements, and repayment requirements for loans; new text end

new text begin (iii) evaluating applications for assistance; new text end

new text begin (iv) awarding assistance; and new text end

new text begin (v) administering the grant and loan program authorized under this section; new text end

new text begin (2) the county must submit its criteria, procedures, and requirements developed pursuant to clause (1) to the commissioner of employment and economic development for review; and new text end

new text begin (3) the commissioner must approve the criteria, procedures, and requirements as developed pursuant to clause (1) to be used by the county in determining eligibility for assistance, evaluating, awarding, and administering the grant and loan program. new text end

new text begin (b) The relief authorized under this section includes: new text end

new text begin (1) grants not to exceed $50,000 per business. Grants may be awarded to applicants only when the county determines that a loan is not appropriate to address the needs of the applicant; and new text end

new text begin (2) loans, with or without interest, and deferred or forgivable loans. The maximum loan amount under this subdivision is $100,000 per business. The lending criteria adopted by the county for loans under this subdivision must: new text end

new text begin (i) specify that an entity receiving a deferred or forgivable loan must remain in the local community a minimum of five years after the date of the loan. The maximum loan deferral period must not exceed five years from the date the loan is approved. The maximum amount of a loan that may be forgiven must not exceed 50 percent of the principle amount and may be forgiven only if the business has remained in operation in the community for at least ten years after the loan is approved; and new text end

new text begin (ii) require submission of a business plan for continued operation until the walleye fishing resource recovers. The plan must document the probable success of the applicant's business plan and probable success in repaying the loan according to the terms established for the loan program; and new text end

new text begin (3) tourism promotion grants to the Mille Lacs Tourism Council. new text end

new text begin (c) All loan repayment funds under this subdivision must be paid to the commissioner of employment and economic development for deposit in the Minnesota investment fund disaster contingency account under Minnesota Statutes, section 116J.8731. new text end

new text begin Subd. 3. new text end

new text begin Qualification requirements. new text end

new text begin To qualify for assistance under this section, a business must: new text end

new text begin (1) be located within one of the following municipalities surrounding Lake Mille Lacs: new text end

new text begin (i) in Crow Wing County, the city of Garrison, township of Garrison, or township of Roosevelt; new text end

new text begin (ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township of Malmo, or township of Lakeside; or new text end

new text begin (iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township of East Side, township of Isle Harbor, township of South Harbor, or township of Kathio; new text end

new text begin (2) document a reduction of at least ten percent in gross receipts in any two-year period since 2010; and new text end

new text begin (3) be a business in one of the following industries, as defined within the North American Industry Classification System: accommodation, restaurants, bars, amusement and recreation, food and beverages retail, sporting goods, miscellaneous retail, general retail, museums, historical sites, health and personal care, gas station, general merchandise, business and professional membership, movies, or nonstore retailer, as determined by Mille Lacs County in consultation with the commissioner of employment and economic development. new text end

new text begin Subd. 4. new text end

new text begin Monitoring. new text end

new text begin (a) Mille Lacs County must establish performance measures that include, but are not limited to, the following components: new text end

new text begin (1) the number of loans approved and the amounts and terms of the loans; new text end

new text begin (2) the number of grants awarded, award amounts, and the reason that a grant award was made in lieu of a loan; new text end

new text begin (3) the loan default rate; new text end

new text begin (4) the number of jobs created or retained as a result of the assistance, including information on the wages and benefit levels, the status of the jobs as full-time or part-time, and the status of the jobs as temporary or permanent; new text end

new text begin (5) the amount of business activity and changes in gross revenues of the grant or loan recipient as a result of the assistance; and new text end

new text begin (6) the new tax revenue generated as a result of the assistance. new text end

new text begin (b) The commissioner of employment and economic development must monitor Mille Lacs County's compliance with this section and the performance measures developed under paragraph (a). new text end

new text begin (c) Mille Lacs County must comply with all requests made by the commissioner under this section. new text end

new text begin Subd. 5. new text end

new text begin Business subsidy requirements. new text end

new text begin Sections 116J.993 to 116J.995 do not apply to assistance under this section. Businesses in receipt of assistance under this section must provide for job creation and retention goals, and wage and benefit goals. new text end

new text begin Subd. 6. new text end

new text begin Administrative costs. new text end

new text begin The commissioner of employment and economic development may use up to one percent of the appropriation made for this section for administrative expenses of the department. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section, except for subdivision 4, is effective July 1, 2016, and expires June 30, 2017. Subdivision 4 is effective July 1, 2016, and expires on the date the last loan is repaid or forgiven as provided under this section. new text end

Sec. 47.

new text begin REVISOR'S INSTRUCTION. new text end

new text begin In the next editions of Minnesota Statutes and Minnesota Rules, the revisor of statutes shall change the term "Urban Initiative Board" or similar to "Minnesota emerging entrepreneur program," "program," or similar terms as the context requires. new text end

ARTICLE 8

LABOR AND INDUSTRY
HOUSEKEEPING

Section 1.

Minnesota Statutes 2015 Supplement, section 326B.13, subdivision 8, is amended to read:

Subd. 8.

Effective date of rules.

A rule to adopt or amend the State Building Code is effective 270 days after publication of the rule's notice of adoption in the State Register. The rule may provide for a later effective date. The rule may provide for an earlier effective date if the commissioner new text begin or board new text end proposing the rule finds that an earlier effective date is necessary to protect public health and safety after considering, among other things, the need for time for training of individuals to comply with and enforce the rule. The commissioner must publish an electronic version of the entire adopted rule chapter on the department's Web site within ten days of receipt from the revisor of statutes. The commissioner shall clearly indicate the effective date of the rule on the department's Web site.

Sec. 2.

Minnesota Statutes 2014, section 326B.439, is amended to read:

326B.439 BAN ON LEAD IN PLUMBING.

deleted text begin Lead pipe,deleted text end Solders and flux containing more than 0.2 percent lead, and pipes and pipe fittings containing new text begin not new text end more than deleted text begin eightdeleted text end new text begin a weighted average of 0.25new text end percent leadnew text begin when used with respect to the wetted surfaces of pipes, pipe fittings, plumbing fittings, and fixturesnew text end shall deleted text begin notdeleted text end be used in any plumbing installation which conveys a potable water supply. A Minnesota seller of lead solder, except for a seller whose primary business is contracting in plumbing, heating, and air conditioning, shall not sell any solder containing 0.2 percent lead unless the seller displays a sign which states,

"Contains Lead

Minnesota law prohibits the use of this solder in any

plumbing installation which is connected to a potable water

supply."

Sec. 3.

Minnesota Statutes 2014, section 326B.49, subdivision 1, is amended to read:

Subdivision 1.

Application, examination, and license fees.

(a) Applications for master and journeyman plumber's licenses shall be made to the commissioner, with all fees required by section 326B.092. Unless the applicant is entitled to a renewal, the applicant shall be licensed by the commissioner only after passing a satisfactory examination developed and administered by the commissioner, based upon rules adopted by the Plumbing Board, showing fitness.

(b) All deleted text begin initialdeleted text end journeyman plumber's licenses shall deleted text begin be effective for more than one calendar year and shalldeleted text end expire on December 31 of deleted text begin the year after the year in which the application is madedeleted text end new text begin each odd-numbered year after issuance or renewalnew text end . All master plumber's licenses shall expire on December 31 of each even-numbered year after issuance or renewal. deleted text begin The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the renewal of master and journeyman plumber's licenses from one year to two years. By June 30, 2011,deleted text end All renewed master and journeyman plumber's licenses shall be two-year licenses.

(c) Applications for contractor licenses shall be made to the commissioner, with all fees required by section 326B.092. All contractor licenses shall expire on December 31 of each odd-numbered year after issuance or renewal.

(d) For purposes of calculating license fees and renewal license fees required under section 326B.092:

(1) the following licenses shall be considered business licenses: plumbing contractor and restricted plumbing contractor;

(2) the following licenses shall be considered master licenses: master plumber and restricted master plumber;

(3) the following licenses shall be considered journeyman licenses: journeyman plumber and restricted journeyman plumber; and

(4) the registration of an unlicensed individual under section 326B.47, subdivision 3, shall be considered an entry level license.

(e) For each filing of a certificate of responsible individual by an employer, the fee is $100.

(f) The commissioner shall charge each person giving bond under section 326B.46, subdivision 2, paragraph (b), a biennial bond filing fee of $100, unless the person is a licensed contractor.

ARTICLE 9

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL HOUSEKEEPING

Section 1.

Minnesota Statutes 2014, section 268.035, subdivision 12, is amended to read:

Subd. 12.

Covered employment.

(a) "Covered employment" means the following unless excluded as "noncovered employment" under subdivision 20:

(1) an employee's entire employment during the calendar quarter if:

(i) the employment during the quarter is performed primarily in Minnesota;

(ii) the employment during the quarter is not performed primarily in Minnesota or any other state but some of the employment is performed in Minnesota and the base of operations or the place from which the employment is directed or controlled is in Minnesota; or

(iii) the employment during the quarter is not performed primarily in Minnesota or any other state and the base of operations or place from which the employment is directed or controlled is not in any state where part of the employment is performed, but the employee's residence is in Minnesota;

(2) an employee's entire employment during the calendar quarter performed within the United States or Canada, if:

(i) the employment is not deleted text begin considereddeleted text end covered employment under the unemployment insurance program of any other state, federal law, or the law of Canada; and

(ii) the place from which the employment is directed or controlled is in Minnesota;

(3) the employment during the calendar quarter, performed entirely outside deleted text begin ofdeleted text end the United States and Canada, by an employee who is a United States citizen in the employ of an American employer if the employer's principal place of business in the United States is located in Minnesota. An "American employer," for the purposes of this clause, means a corporation organized under the laws of any state, an individual who is a resident of the United States, or a partnership if two-thirds or more of the partners are residents of the United States, or a trust, if all of the trustees are residents of the United States; and

(4) all employment during the calendar quarter performed by an officer or member of the crew of an American vessel on or in connection with the vessel, if the operating office from which the operations of the vessel operating on navigable waters within, or within and without, the United States are ordinarily and regularly supervised, managed, directed, and controlled is in Minnesota.

(b) "Covered employment" includes covered agricultural employment under subdivision 11.

(c) For the purposes of deleted text begin satisfying the period of ineligibility underdeleted text end section 268.095, deleted text begin subdivision 10,deleted text end "covered employment" includes deleted text begin covereddeleted text end employment new text begin covered new text end under an unemployment insurance program:

(1) of any other state; or

(2) established by an act of Congress.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 31, 2016, and applies to all matters pending a determination or a decision by an unemployment law judge. new text end

Sec. 2.

Minnesota Statutes 2014, section 268.035, subdivision 29, is amended to read:

Subd. 29.

Wages.

(a) "Wages" means all compensation for employment, including commissions; bonuses, awards, and prizes; severance payments; standby pay; vacation and holiday pay; back pay as of the date of payment; tips and gratuities paid to an employee by a customer of an employer and accounted for by the employee to the employer; sickness and accident disability payments, except as otherwise provided in this subdivision; and the cash value of housing, utilities, meals, exchanges of services, and any other goods and services provided to compensate an employee, except:

(1) the amount of any payment made to, or on behalf of, an employee under a plan established by an employer that makes provision for employees generally or for a class or classes of employees, including any amount paid by an employer for insurance or annuities, or into a plan, to provide for a payment, on account of (i) retirement or (ii) medical and hospitalization expenses in connection with sickness or accident disability, or (iii) death;

(2) the payment by an employer of the tax imposed upon an employee under United States Code, title 26, section 3101 of the Federal Insurance Contribution Act, with respect to compensation paid to an employee for domestic employment in a private household of the employer or for agricultural employment;

(3) any payment made to, or on behalf of, an employee or beneficiary (i) from or to a trust described in United States Code, title 26, section 401(a) of the federal Internal Revenue Code, that is exempt from tax under section 501(a) at the time of the payment unless the payment is made to an employee of the trust as compensation for services as an employee and not as a beneficiary of the trust, or (ii) under or to an annuity plan that, at the time of the payment, is a plan described in section 403(a);

(4) the value of any special discount or markdown allowed to an employee on goods purchased from or services supplied by the employer where the purchases are optional and do not constitute regular or systematic payment for services;

(5) customary and reasonable directors' fees paid to individuals who are not otherwise employed by the corporation of which they are directors;

(6) the payment to employees for reimbursement of meal expenses when employees are required to perform work after their regular hours;

(7) the payment into a trust or plan for purposes of providing legal or dental services if provided for all employees generally or for a class or classes of employees;

(8) the value of parking facilities provided or paid for by an employer, in whole or in part, if provided for all employees generally or for a class or classes of employees;

(9) royalties to an owner of a franchise, license, copyright, patent, oil, mineral, or other right;

(10) advances or reimbursements for traveling or other bona fide ordinary and necessary expenses incurred or reasonably expected to be incurred in the business of the employer. Traveling and other reimbursed expenses must be identified either by making separate payments or by specifically indicating the separate amounts where both wages and expense allowances are combined in a single payment;

(11) residual payments to radio, television, and similar artists that accrue after the production of television commercials, musical jingles, spot announcements, radio transcriptions, film sound tracks, and similar activities;

(12) the income to a former employee resulting from the exercise of a nonqualified stock option;

(13) deleted text begin payments made to supplementdeleted text end new text begin supplementalnew text end unemployment deleted text begin benefitsdeleted text end new text begin benefit paymentsnew text end under a plan established by an employer, deleted text begin that makes provisions for employees generally or for a class or classes of employees under the written terms of an agreement, contract, trust arrangement, or other instrumentdeleted text end new text begin if the payment is not wages under the Federal Unemployment Tax Actnew text end . The deleted text begin plan must provide supplementaldeleted text end payments new text begin are wages unless made new text end solely for the supplementing of weekly state or federal unemployment benefits. deleted text begin The plan must provide supplemental payments only for those weeks the applicant has been paid regular, extended, or additional unemployment benefits. The supplemental payments, when combined with the applicant's weekly unemployment benefits paid, may not exceed the applicant's regular weekly pay. The plan must not allow the assignment ofdeleted text end Supplemental new text begin unemployment benefit new text end payments deleted text begin or provide for any type of additional payment. The plan must not requiredeleted text end new text begin may not be assigned, nor maynew text end any consideration new text begin be required new text end from the applicant, other than a release of claimsdeleted text begin , and must not be designed for the purpose of avoiding the payment of Social Security obligations, or unemployment taxes on money disbursed from the plandeleted text end new text begin in order to be excluded from wagesnew text end ;

(14) sickness or accident disability payments made by the employer after the expiration of six calendar months following the last calendar month that the individual worked for the employer;

(15) disability payments made under the provisions of any workers' compensation law;

(16) sickness or accident disability payments made by a third-party payer such as an insurance company; or

(17) payments made into a trust fund, or for the purchase of insurance or an annuity, to provide for sickness or accident disability payments to employees under a plan or system established by the employer that provides for the employer's employees generally or for a class or classes of employees.

(b) Nothing in this subdivision excludes from the term "wages" any payment made under any type of salary reduction agreement, including payments made under a cash or deferred arrangement and cafeteria plan, as defined in United States Code, title 26, sections 401(k) and 125 of the federal Internal Revenue Code, to the extent that the employee has the option to receive the payment in cash.

(c) Wages includes the total payment to the operator and supplier of a vehicle or other equipment where the payment combines compensation for personal services as well as compensation for the cost of operating and hiring the equipment in a single payment. This paragraph does not apply if:

(1) there is a preexisting written agreement providing for allocation of specific amounts; or

(2) at the time of each payment there is a written deleted text begin acknowledgementdeleted text end new text begin acknowledgment new text end indicating the separate allocated amounts.

(d) Wages includes payments made for services as a caretaker. Unless there is a contract or other proof to the contrary, compensation is considered as being equally received by a married couple where the employer makes payment to only one spouse, or by all tenants of a household who perform services where two or more individuals share the same dwelling and the employer makes payment to only one individual.

(e) Wages includes payments made for services by a migrant family. Where services are performed by a married couple or a family and an employer makes payment to only one individual, each worker is considered as having received an equal share of the compensation unless there is a contract or other proof to the contrary.

(f) Wages includes advances or draws against future earnings, when paid, unless the payments are designated as a loan or return of capital on the books of the employer at the time of payment.

(g) Wages includes payments made by a subchapter "S" corporation, as organized under the Internal Revenue Code, to or on behalf of officers and shareholders that are reasonable compensation for services performed for the corporation.

For a subchapter "S" corporation, wages does not include:

(1) a loan for business purposes to an officer or shareholder evidenced by a promissory note signed by an officer before the payment of the loan proceeds and recorded on the books and records of the corporation as a loan to an officer or shareholder;

(2) a repayment of a loan or payment of interest on a loan made by an officer to the corporation and recorded on the books and records of the corporation as a liability;

(3) a reimbursement of reasonable corporation expenses incurred by an officer and documented by a written expense voucher and recorded on the books and records of the corporation as corporate expenses; and

(4) a reasonable lease or rental payment to an officer who owns property that is leased or rented to the corporation.

Sec. 3.

Minnesota Statutes 2015 Supplement, section 268.085, subdivision 2, is amended to read:

Subd. 2.

Not eligible.

An applicant is ineligible for unemployment benefits for any week:

(1) that occurs before the effective date of a benefit account;

(2) that the applicant, at deleted text begin the beginning ofdeleted text end new text begin any time duringnew text end the week, has an outstanding fraud overpayment balance under section 268.18, subdivision 2, including any penalties and interest;

(3) that occurs in a period when the applicant is a student in attendance at, or on vacation from a secondary school including the period between academic years or terms;

(4) that the applicant is incarcerated or performing court-ordered community service. The applicant's weekly unemployment benefit amount is reduced by one-fifth for each day the applicant is incarcerated or performing court-ordered community service;

(5) that the applicant fails or refuses to provide information on an issue of ineligibility required under section 268.101;

(6) that the applicant is performing services 32 hours or more, in employment, covered employment, noncovered employment, volunteer work, or self-employment regardless of the amount of any earnings; or

(7) with respect to which the applicant has filed an application for unemployment benefits under any federal law or the law of any other state. If the appropriate agency finally determines that the applicant is not entitled to establish a benefit account under federal law or the law of any other state, this clause does not apply.

Sec. 4.

Minnesota Statutes 2014, section 268.0865, subdivision 3, is amended to read:

Subd. 3.

Continued request for unemployment benefits by electronic transmission.

(a) A continued request for unemployment benefits by electronic transmission must be filed to that electronic mail address, telephone number, or Internet address prescribed by the commissioner for that applicant. In order to constitute a continued request, all information asked for, including information authenticating that the applicant is sending the transmission, must be provided in the format required. If all of the information asked for is not provided, the communication does not constitute a continued request for unemployment benefits.

(b) The new text begin continued request by new text end electronic transmission deleted text begin communicationdeleted text end must be filed new text begin within four calendar weeks following the week for which payment is requested new text end on the deleted text begin datedeleted text end new text begin day of the weeknew text end and during the time of day designated for the applicant deleted text begin for filing a continued request by electronic transmissiondeleted text end .

(c) deleted text begin If the electronic transmission continued request is not filed as required under paragraph (b), a continued request by electronic transmission must be accepted if the applicant files the continued request by electronic transmission within three calendar weeks following the week for which payment is requested.deleted text end If the continued request by electronic transmission is not filed within deleted text begin threedeleted text end new text begin fournew text end calendar weeks following the week for which payment is requested, the electronic continued request will not be accepted and the applicant is ineligible for unemployment benefits for the period covered by the continued request, unless the applicant shows good cause for failing to file the continued request by electronic transmission within the time period required.

Sec. 5.

Minnesota Statutes 2014, section 268.0865, subdivision 4, is amended to read:

Subd. 4.

Continued request for unemployment benefits by mail.

(a) A continued request for unemployment benefits by mail must be on a form prescribed by the commissioner. The form, in order to constitute a continued request, must be totally completed and signed by the applicant. The form must be filed by mail, in an envelope with postage prepaid, and sent to the address designated deleted text begin during the week following the week for which payment is requested.deleted text end

deleted text begin (b) If the mail continued request for unemployment benefits is not filed as required under paragraph (a), a continued request must be accepted if the form is filed by mail deleted text end within deleted text begin threedeleted text end new text begin fournew text end calendar weeks following the week for which payment is requested.

new text begin (b) new text end If the new text begin continued request new text end form is not filed within deleted text begin threedeleted text end new text begin fournew text end calendar weeks following the week for which payment is requested, the form will not be accepted and the applicant is ineligible for unemployment benefits deleted text begin for the period covered by the continued request for unemployment benefits,deleted text end unless the applicant shows good cause for failing to file the form by mail within the time period required.

(c) If the applicant has been designated to file a continued request for unemployment benefits by mail, an applicant may submit the form by facsimile transmission within deleted text begin threedeleted text end new text begin fournew text end calendar weeks following the week for which payment is requested. A form submitted by facsimile transmission must be sent only to the telephone number assigned for that purpose.

(d) An applicant who has been designated to file a continued request by mail may personally deliver a continued request form only to the location to which the form was otherwise designated to be mailed.

Sec. 6.

Minnesota Statutes 2014, section 268.095, subdivision 2, is amended to read:

Subd. 2.

Quit defined.

(a) A quit from employment occurs when the decision to end the employment was, at the time the employment ended, the employee's.

new text begin (b) When determining if an applicant quit, the theory of a constructive quit does not apply. new text end

deleted text begin (b)deleted text end new text begin (c)new text end An employee who has been notified that the employee will be discharged in the future, who chooses to end the employment while employment in any capacity is still available, deleted text begin is considered to havedeleted text end new text begin hasnew text end quit the employment.

deleted text begin (c)deleted text end new text begin (d)new text end An employee who seeks to withdraw a previously submitted notice of quitting deleted text begin is considered to havedeleted text end new text begin hasnew text end quit the employment, as of the intended date of quitting, if the employer does not agree that the notice may be withdrawn.

deleted text begin (d)deleted text end new text begin (e)new text end An applicant deleted text begin whodeleted text end new text begin has quit employment with a staffing service ifnew text end , within five calendar days after completion of a suitable job assignment from a staffing servicenew text begin , the applicant:new text end

(1) fails without good cause to affirmatively request an additional suitable job assignmentdeleted text begin ,deleted text end new text begin ;new text end

(2) refuses without good cause an additional suitable job assignment offereddeleted text begin ,deleted text end new text begin ;new text end or

(3) accepts employment with the client of the staffing servicedeleted text begin , is considered to have quit employment with the staffing servicedeleted text end . Accepting employment with the client of the staffing service meets the requirements of the exception to ineligibility under subdivision 1, clause (2).

This paragraph applies only if, at the time of beginning of employment with the staffing service, the applicant signed and was provided a copy of a separate document written in clear and concise language that informed the applicant of this paragraph and that unemployment benefits may be affected.

For purposes of this paragraph, "good cause" is a reason that deleted text begin is significant anddeleted text end would compel an average, reasonable worker, who would otherwise want an additional suitable job assignment with the staffing service (1) to fail to contact the staffing service, or (2) to refuse an offered assignment.

Sec. 7.

Minnesota Statutes 2014, section 268.095, subdivision 5, is amended to read:

Subd. 5.

Discharge defined.

(a) A discharge from employment occurs when any words or actions by an employer would lead a reasonable employee to believe that the employer will no longer allow the employee to work for the employer in any capacity. A layoff because of lack of work is deleted text begin considereddeleted text end a discharge. A suspension from employment without pay of more than 30 calendar days is deleted text begin considereddeleted text end a discharge.

new text begin (b) When determining if an applicant was discharged, the theory of a constructive discharge does not apply. new text end

deleted text begin (b)deleted text end new text begin (c)new text end An employee who gives notice of intention to quit the employment and is not allowed by the employer to work the entire notice period is deleted text begin considereddeleted text end discharged from the employment as of the date the employer will no longer allow the employee to work. If the discharge occurs within 30 calendar days before the intended date of quitting, then, as of the intended date of quitting, the separation from employment is deleted text begin considereddeleted text end a quit from employment subject to subdivision 1.

deleted text begin (c)deleted text end new text begin (d)new text end The end of a job assignment with the client of a staffing service is deleted text begin considered deleted text end a discharge from employment with the staffing service unless subdivision 2, paragraph (d), applies.

Sec. 8.

Minnesota Statutes 2014, section 268.18, is amended to read:

268.18 UNEMPLOYMENT BENEFIT OVERPAYMENTS.

Subdivision 1.

deleted text begin Nonfrauddeleted text end new text begin Repaying annew text end overpayment.

(a) Any applicant who (1) because of a determination or amended determination issued under section 268.07 or 268.101, or any other section of this chapter, or (2) because of an unemployment law judge's decision under section 268.105, has received any unemployment benefits that the applicant was held not entitled to, new text begin is overpaid the benefits, and new text end must promptly repay the deleted text begin unemploymentdeleted text end benefits to the trust fund.

(b) If the applicant fails to repay the unemployment benefits overpaid, deleted text begin the commissioner may offset from any future unemployment benefits otherwise payable the amount of the overpayment. Except when the overpayment resulted because the applicant failed to report deductible earnings or deductible or benefit delaying payments, no single offset may exceed 50 percent of the amount of the payment from which the offset is made. The overpayment may alsodeleted text end new text begin including any penalty and interest assessed under subdivisions 2 and 2b, the total due maynew text end be collected by the methods allowed under state and federal law.

deleted text begin (c) If an applicant has been overpaid unemployment benefits under the law of another state, because of a reason other than fraud, and that state certifies that the applicant is liable under its law to repay the unemployment benefits and requests the commissioner to recover the overpayment, the commissioner may offset from future unemployment benefits otherwise payable the amount of overpayment, except that no single offset may exceed 50 percent of the amount of the payment from which the offset is made. deleted text end

Subd. 2.

Overpayment because of fraud.

(a) deleted text begin Anydeleted text end new text begin Annew text end applicant deleted text begin who receivesdeleted text end new text begin has committed fraud if the applicant is overpaidnew text end unemployment benefits bynew text begin :new text end

new text begin (1)new text end knowingly misrepresenting, misstating, or failing to disclose any material factdeleted text begin ,deleted text end new text begin ; new text end or deleted text begin who makesdeleted text end

new text begin (2) makingnew text end a false statement or representation without a good faith belief as to the correctness of the statement or representationdeleted text begin , has committed frauddeleted text end .

After the discovery of facts indicating fraud, the commissioner must deleted text begin makedeleted text end new text begin issuenew text end a determination deleted text begin that the applicant obtained unemployment benefits by fraud and that the applicant must promptly repay the unemployment benefits to the trust fund. In addition, the commissioner must assessdeleted text end new text begin of overpayment penalty assessingnew text end a penalty equal to 40 percent of the amount deleted text begin fraudulently obtaineddeleted text end new text begin overpaidnew text end . This penalty is in addition to penalties under section 268.182. deleted text begin The determination is effective the Sunday of the week that it was issued.deleted text end

(b) Unless the applicant files an appeal within 20 calendar days after the sending of deleted text begin thedeleted text end new text begin anew text end determination of overpayment deleted text begin by frauddeleted text end new text begin penaltynew text end to the applicant by mail or electronic transmission, the determination is final. Proceedings on the appeal are conducted in accordance with section 268.105.

(c) deleted text begin If the applicant fails to repay the unemployment benefits, penalty, and interest assessed, the total due may be collected by the methods allowed under state and federal law.deleted text end A determination of overpayment deleted text begin by frauddeleted text end new text begin penaltynew text end must state the methods of collection the commissioner may use to recover the overpaymentnew text begin , penalty, and interest assessednew text end . Money received in repayment of deleted text begin fraudulently obtaineddeleted text end new text begin overpaidnew text end unemployment benefits, penalties, and interest is first applied to the deleted text begin unemploymentdeleted text end benefits overpaid, then to the penalty amount due, then to any interest due. 62.5 percent of the payments made toward the penalty are credited to the contingent account and 37.5 percent credited to the trust fund.

deleted text begin (d) If an applicant has been overpaid unemployment benefits under the law of another state because of fraud and that state certifies that the applicant is liable to repay the unemployment benefits and requests the commissioner to recover the overpayment, the commissioner may offset from future unemployment benefits otherwise payable the amount of overpayment. deleted text end

deleted text begin (e) Regardless of the limitations in section 268.101, subdivision 2, paragraph (e), unemployment benefits paid for weeks more than four years before the date ofdeleted text end new text begin (d)new text end A determination of overpayment deleted text begin by fraud issueddeleted text end new text begin penaltynew text end under this subdivision deleted text begin are not considered overpaid unemployment benefitsdeleted text end new text begin may be issued within 48 months of the establishment of the benefit account upon which the unemployment benefits were obtained through fraudnew text end .

Subd. 2b.

Interest.

On any unemployment benefits fraudulently obtained, and any penalty amounts assessed under subdivision 2, the commissioner must assess interest at the rate of one percent per month on any amount that remains unpaid beginning 30 calendar days after the date of deleted text begin thedeleted text end new text begin anew text end determination of overpayment deleted text begin by frauddeleted text end new text begin penaltynew text end . A determination of overpayment deleted text begin by frauddeleted text end new text begin penaltynew text end must state that interest will be assessed. Interest is assessed in the same manner as on employer debt under section 268.057, subdivision 5. Interest payments collected under this subdivision are credited to the trust fund.

Subd. 3a.

Offset of deleted text begin federaldeleted text end unemployment benefits.

deleted text begin The commissioner is authorized to enter into reciprocal agreements with the United States Secretary of Labor, whereby, deleted text end new text begin (a) The commissioner may offset from any future unemployment benefits otherwise payable the amount of a nonfraud overpayment. Except when the nonfraud overpayment resulted because the applicant failed to report deductible earnings or deductible or benefit delaying payments, no single offset may exceed 50 percent of the amount of the payment from which the offset is made. new text end

new text begin (b)new text end Overpayments of unemployment benefits deleted text begin as determineddeleted text end under new text begin a new text end federal deleted text begin law deleted text end new text begin programnew text end , may be recovered by offset from deleted text begin unemploymentdeleted text end new text begin futurenew text end benefits otherwise payable deleted text begin anddeleted text end new text begin .new text end

new text begin (c) If an applicant has been overpaid unemployment benefits under the law of another state, the commissioner may offset from future benefits otherwise payable the amount of overpayment. new text end

new text begin (d) Nonfraudnew text end unemployment benefit overpayments deleted text begin under subdivisions 1 and 2 deleted text end may be recovered by offset from deleted text begin unemploymentdeleted text end new text begin futurenew text end benefits otherwise payable under a federal program.

Subd. 4.

Cancellation of overpayments.

(a) If unemployment benefits overpaid deleted text begin under subdivision 1deleted text end new text begin for reasons other than fraudnew text end are not repaid or offset from subsequent deleted text begin unemploymentdeleted text end benefits deleted text begin as provided for in subdivision 1deleted text end within six years after the date of the determination or decision holding the applicant overpaid, the commissioner must cancel the overpayment balance, and no administrative or legal proceedings may be used to enforce collection of those amounts.

(b) If unemployment benefits deleted text begin determineddeleted text end overpaid deleted text begin under subdivision 2deleted text end new text begin because of fraudnew text end including penalties and interest are not repaid within ten years after the date of the determination of overpayment deleted text begin by frauddeleted text end new text begin penaltynew text end , the commissioner must cancel the overpayment balance and any penalties and interest due, and no administrative or legal proceeding may be used to enforce collection of those amounts.

(c) The commissioner may cancel at any time any overpayment, including penalties and interest, that the commissioner determines is uncollectible because of death or bankruptcy.

Subd. 4a.

Court fees; collection fees.

(a) If the deleted text begin commissionerdeleted text end new text begin department new text end is required to pay any court fees in an attempt to enforce collection of overpaid unemployment benefits, penalties, or interest, deleted text begin the commissioner may adddeleted text end the amount of the court fees new text begin may be added new text end to the total amount due.

(b) If an applicant who has been deleted text begin determineddeleted text end overpaid unemployment benefits because of fraud seeks to have any portion of the debt discharged under the federal bankruptcy code, and the deleted text begin commissionerdeleted text end new text begin departmentnew text end files an objection in bankruptcy court to the discharge, the deleted text begin commissioner may add the commissioner'sdeleted text end cost of any court fees new text begin may be added new text end to the debt if the bankruptcy court does not discharge the debt.

(c) If the Internal Revenue Service assesses the deleted text begin commissionerdeleted text end new text begin departmentnew text end a fee for offsetting from a federal tax refund the amount of any overpayment, including penalties and interest, the amount of the fee may be added to the total amount due. The offset amount must be put in the trust fund and that amount credited to the total amount due from the applicant.

Subd. 5.

Remedies.

(a) Any method undertaken to recover an overpayment of unemployment benefits, including any penalties and interest, is not considered an election of a method of recovery.

(b) Intervention or lack thereof, in whole or in part, in a workers' compensation matter under section 176.361 is not considered an election of a remedy and does not prevent the commissioner from determining any unemployment benefits overpaid under subdivision 1 or 2 or taking action under section 268.182.

Subd. 6.

Collection of overpayments.

(a) The commissioner may not compromise the amount deleted text begin that has been determineddeleted text end new text begin of anynew text end overpaid deleted text begin under this sectiondeleted text end new text begin unemployment benefitsnew text end including penalties and interest.

(b) The commissioner has discretion regarding the recovery of any overpayment deleted text begin under subdivision 1deleted text end new text begin for reasons other than fraudnew text end . Regardless of any law to the contrary, the commissioner is not required to refer any deleted text begin amount determined overpaid under subdivision 1deleted text end new text begin overpayment for reasons other than fraudnew text end to a public or private collection agency, including agencies of this state.

(c) Amounts deleted text begin determineddeleted text end overpaid deleted text begin under subdivision 1deleted text end new text begin for reasons other than fraud new text end are not considered a "debt" to the state of Minnesota for purposes of any reporting requirements to the commissioner of management and budget.

(d) A pending appeal under section 268.105 does not suspend the assessment of interest, penalties, or collection of an overpayment deleted text begin under this sectiondeleted text end .

(e) Section 16A.626 applies to the repayment by an applicant of any overpayment, penalty, or interest deleted text begin under this sectiondeleted text end .

Sec. 9.

Laws 2015, First Special Session chapter 1, article 6, section 16, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective the day following final enactment and is retroactive to March 1, 2015. This section expires on deleted text begin June 1, 2016deleted text end new text begin December 1, 2016new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and applies retroactively to March 1, 2015. new text end

Sec. 10.

new text begin EFFECTIVE DATE. new text end

new text begin This article is effective July 31, 2016, unless indicated otherwise. new text end

ARTICLE 10

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL TECHNICAL

Section 1.

Minnesota Statutes 2014, section 268.035, is amended by adding a subdivision to read:

new text begin Subd. 12e. new text end

new text begin Earnings. new text end

new text begin "Earnings" means all compensation to which the applicant has a legal claim and is earned income under state and federal law for income tax purposes. new text end

Sec. 2.

Minnesota Statutes 2014, section 268.035, subdivision 20, is amended to read:

Subd. 20.

Noncovered employment.

"Noncovered employment" means:

(1) employment for the United States government or an instrumentality thereof, including military service;

(2) employment for a state, other than Minnesota, or a political subdivision or instrumentality thereof;

(3) employment for a foreign governmentdeleted text begin ;deleted text end

deleted text begin (4) employment for an instrumentality wholly owned by a foreign government, if the employment is of a character similar to that performed in foreign countries by employees of the United States government or an instrumentality thereof and the United States Secretary of State has certified that the foreign government grants an equivalent exemption to similar employment performed in the foreign country by employees of the United States government and instrumentalities thereof; deleted text end

deleted text begin (5)deleted text end new text begin (4)new text end employment covered under deleted text begin United States Code, title 45, section 351,deleted text end the new text begin federal new text end Railroad Unemployment Insurance Act;

deleted text begin (6) employment covered by a reciprocal arrangement between the commissioner and another state or the federal government that provides that all employment performed by an individual for an employer during the period covered by the reciprocal arrangement is considered performed entirely within another state; deleted text end

deleted text begin (7)deleted text end new text begin (5)new text end employment for a church or convention or association of churches, or deleted text begin an deleted text end new text begin a nonprofitnew text end organization operated primarily for religious purposes that is operated, supervised, controlled, or principally supported by a church or convention or association of churches deleted text begin described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt from income tax under section 501(a)deleted text end ;

deleted text begin (8)deleted text end new text begin (6)new text end employment new text begin for Minnesota or a political subdivision, or a nonprofit organization, new text end of a duly ordained or licensed minister of a church in the exercise of a ministry or by a member of a religious order in the exercise of duties required by the order, deleted text begin for Minnesota or a political subdivision or an organization described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt from income tax under section 501(a)deleted text end ;

deleted text begin (9)deleted text end new text begin (7)new text end employment new text begin for Minnesota or a political subdivision, or a nonprofit organization, new text end of an individual receiving rehabilitation of "sheltered" work in a facility conducted for the purpose of carrying out a program of rehabilitation for individuals whose earning capacity is impaired by age or physical or mental deficiency or injury or a program providing "sheltered" work for individuals who because of an impaired physical or mental capacity cannot be readily absorbed in the competitive labor market. This clause applies only to services performed deleted text begin for Minnesota or a political subdivision or an organization described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt from income tax under section 501(a)deleted text end in a facility certified by the Rehabilitation Services Branch of the department or in a day training or habilitation program licensed by the Department of Human Services;

deleted text begin (10)deleted text end new text begin (8)new text end employmentnew text begin for Minnesota or a political subdivision, or a nonprofit organization,new text end of an individual receiving work relief or work training as part of an unemployment work relief or work training program assisted or financed in whole or in part by any federal agency or an agency of a state or political subdivision thereof. deleted text begin This clause applies only to employment for Minnesota or a political subdivision or an organization described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt from income tax under section 501(a).deleted text end This clause does not apply to programs that require unemployment benefit coverage for the participants;

deleted text begin (11)deleted text end new text begin (9)new text end employment for Minnesota or a political subdivisionnew text begin ,new text end as an elected official, a member of a legislative body, or a member of the judiciary;

deleted text begin (12)deleted text end new text begin (10)new text end employment as a member of the Minnesota National Guard or Air National Guard;

deleted text begin (13)deleted text end new text begin (11)new text end employment for Minnesotadeleted text begin ,deleted text end new text begin ornew text end a political subdivision, or instrumentality thereof, deleted text begin as an employeedeleted text end new text begin of an individualnew text end serving deleted text begin onlydeleted text end on a temporary basis in case of fire, flood, tornado, or similar emergency;

deleted text begin (14)deleted text end new text begin (12)new text end employment as an election official or election worker for Minnesota or a political subdivision, deleted text begin but onlydeleted text end if the compensation for that employment was less than $1,000 in a calendar year;

deleted text begin (15)deleted text end new text begin (13)new text end employment for Minnesota that is a major policy-making or advisory position in the unclassified service;

deleted text begin (16)deleted text end new text begin (14)new text end employment for Minnesota in an unclassified position established under section 43A.08, subdivision 1a;

deleted text begin (17)deleted text end new text begin (15)new text end employment for a political subdivision of Minnesota that is a nontenured major policy making or advisory position;

deleted text begin (18)deleted text end new text begin (16)new text end domestic employment in a private household, local college club, or local chapter of a college fraternity or sorority deleted text begin performed for a person, onlydeleted text end new text begin ,new text end if the wages paid in any calendar quarter in either the current or prior calendar year to all individuals in domestic employment totaled less than $1,000.

"Domestic employment" includes all service in the operation and maintenance of a private household, for a local college club, or local chapter of a college fraternity or sorority as distinguished from service as an employee in the pursuit of an employer's trade or business;

deleted text begin (19)deleted text end new text begin (17)new text end employment of an individual by a son, daughter, or spouse, and employment of a child under the age of 18 by the child's father or mother;

deleted text begin (20)deleted text end new text begin (18)new text end employment of an inmate of a custodial or penal institution;

deleted text begin (21)deleted text end new text begin (19)new text end employment for a school, college, or universitynew text begin ,new text end by a student who is enrolled and whose primary relation to the school, college, or university is as a student. This does not include an individual whose primary relation to the school, college, or university is as an employee who also takes courses;

deleted text begin (22)deleted text end new text begin (20)new text end employment of an individual who is enrolled as a student in a full-time program at a nonprofit or public educational institution that maintains a regular faculty and curriculum and has a regularly organized body of students in attendance at the place where its educational activities are carried on, taken for credit at the institution, that combines academic instruction with work experience, if the employment is an integral part of the program, and the institution has so certified to the employer, except that this clause does not apply to employment in a program established for or on behalf of an employer or group of employers;

deleted text begin (23)deleted text end new text begin (21)new text end employment of university, college, or professional school students in an internship or other training program with the city of St. Paul or the city of Minneapolis under Laws 1990, chapter 570, article 6, section 3;

deleted text begin (24)deleted text end new text begin (22)new text end employment for a hospital by a patient of the hospital. "Hospital" means an institution that has been licensed by the Department of Health as a hospital;

deleted text begin (25)deleted text end new text begin (23)new text end employment as a student nurse for a hospital or a nurses' training school by an individual who is enrolled and is regularly attending classes in an accredited nurses' training school;

deleted text begin (26)deleted text end new text begin (24)new text end employment as an intern for a hospital by an individual who has completed a four-year course in an accredited medical school;

deleted text begin (27)deleted text end new text begin (25)new text end employment as an insurance salesperson, by other than a corporate officer, if all the wages from the employment is solely by way of commission. The word "insurance" includes an annuity and an optional annuity;

deleted text begin (28)deleted text end new text begin (26)new text end employment as an officer of a township mutual insurance company or farmer's mutual insurance company deleted text begin operatingdeleted text end under chapter 67A;

deleted text begin (29)deleted text end new text begin (27)new text end employment of a corporate officer, if the officer directly or indirectly, including through a subsidiary or holding company, owns 25 percent or more of the employer corporation, and employment of a member of a limited liability company, if the member directly or indirectly, including through a subsidiary or holding company, owns 25 percent or more of the employer limited liability company;

deleted text begin (30)deleted text end new text begin (28)new text end employment as a real estate salesperson, deleted text begin bydeleted text end other than a corporate officer, if all the wages from the employment is solely by way of commission;

deleted text begin (31)deleted text end new text begin (29)new text end employment as a direct seller as defined in United States Code, title 26, section 3508;

deleted text begin (32)deleted text end new text begin (30)new text end employment of an individual under the age of 18 in the delivery or distribution of newspapers or shopping news, not including delivery or distribution to any point for subsequent delivery or distribution;

deleted text begin (33)deleted text end new text begin (31)new text end casual employment performed for an individual, other than domestic employment under clause deleted text begin (18)deleted text end new text begin (16)new text end , that does not promote or advance that employer's trade or business;

deleted text begin (34)deleted text end new text begin (32)new text end employment in "agricultural employment" unless deleted text begin considereddeleted text end new text begin it isnew text end "covered agricultural employment" under subdivision 11; or

deleted text begin (35)deleted text end new text begin (33)new text end if employment during one-half or more of any pay period was covered employment, all the employment for the pay period is deleted text begin considereddeleted text end covered employment; but if during more than one-half of any pay period the employment was noncovered employment, then all of the employment for the pay period is deleted text begin considereddeleted text end noncovered employment. "Pay period" means a period of not more than a calendar month for which a payment or compensation is ordinarily made to the employee by the employer.

Sec. 3.

Minnesota Statutes 2014, section 268.035, is amended by adding a subdivision to read:

new text begin Subd. 20b. new text end

new text begin Nonprofit organization. new text end

new text begin "Nonprofit organization" means an organization described in United States Code, title 26, section 501(c)(3), and is exempt from income tax under section 501(a). new text end

Sec. 4.

Minnesota Statutes 2014, section 268.035, subdivision 23a, is amended to read:

Subd. 23a.

Suitable employment.

(a) Suitable employment means employment in the applicant's labor market area that is reasonably related to the applicant's qualifications. In determining whether any employment is suitable for an applicant, the degree of risk involved to the health and safety, physical fitness, prior training, experience, length of unemployment, prospects for securing employment in the applicant's customary occupation, and the distance of the employment from the applicant's residence is considered.

(b) In determining what is suitable employment, primary consideration is given to the temporary or permanent nature of the applicant's separation from employment and whether the applicant has favorable prospects of finding employment in the applicant's usual or customary occupation at the applicant's past wage level within a reasonable period of time.

If prospects are unfavorable, employment at lower skill or wage levels is suitable if the applicant is reasonably suited for the employment considering the applicant's education, training, work experience, and current physical and mental ability.

The total compensation must be considered, including the wage rate, hours of employment, method of payment, overtime practices, bonuses, incentive payments, and fringe benefits.

(c) When potential employment is at a rate of pay lower than the applicant's former rate, consideration must be given to the length of the applicant's unemployment and the proportion of difference in the rates. Employment that may not be suitable because of lower wages during the early weeks of the applicant's unemployment may become suitable as the duration of unemployment lengthens.

(d) For an applicant seasonally unemployed, suitable employment includes temporary work in a lower skilled occupation that pays average gross weekly wages equal to or more than 150 percent of the applicant's weekly unemployment benefit amount.

(e) If a majority of the applicant's weeks of employment in the base period includes part-time employment, part-time employment in a position with comparable skills and comparable hours that pays comparable wages is deleted text begin considereddeleted text end suitable employment.

Full-time employment is not deleted text begin considereddeleted text end suitable employment for an applicant if a majority of the applicant's weeks of employment in the base period includes part-time employment.

(f) To determine suitability of employment in terms of shifts, the arrangement of hours in addition to the total number of hours is to be considered. Employment on a second, third, rotating, or split shift is suitable employment if it is customary in the occupation in the labor market area.

(g) Employment is not deleted text begin considereddeleted text end suitable if:

(1) the position offered is vacant because of a labor dispute;

(2) the wages, hours, or other conditions of employment are deleted text begin substantiallydeleted text end less favorable than those prevailing for similar employment in the labor market area;new text begin ornew text end

(3) as a condition of becoming employed, the applicant would be required to join a company union or to resign from or refrain from joining any bona fide labor organizationdeleted text begin ; ordeleted text end

deleted text begin (4) the employment is with a staffing service and less than 25 percent of the applicant's wage credits are from a job assignment with the client of a staffing servicedeleted text end .

(h) A job assignment with a staffing service is deleted text begin considereddeleted text end suitable only if 25 percent or more of the applicant's wage credits are from job assignments with clients of a staffing service and the job assignment meets the definition of suitable employment under paragraph (a).

Sec. 5.

Minnesota Statutes 2014, section 268.085, subdivision 4, is amended to read:

Subd. 4.

Social Security old age insurance benefits.

(a) Any applicant aged 62 or over is required to state when filing an application for unemployment benefits and when filing continued requests for unemployment benefits if the applicant is receiving, has filed for, or intends to file for, primary Social Security old age benefits.

new text begin (b) new text end Unless paragraph deleted text begin (b)deleted text end new text begin (c)new text end applies, 50 percent of the weekly equivalent of the primary Social Security old age benefit the applicant has received, has filed for, or intends to file for, with respect to that week must be deducted from an applicant's weekly unemployment benefit amount.

deleted text begin (b)deleted text end new text begin (c)new text end If all of the applicant's wage credits were earned while the applicant was claiming Social Security old age benefits, there is no deduction new text begin of the Social Security benefits new text end from the applicant's weekly unemployment benefit amount.

deleted text begin (c)deleted text end new text begin (d)new text end Information from the Social Security Administration is deleted text begin considereddeleted text end conclusive, absent specific evidence showing that the information was erroneous.

deleted text begin (d)deleted text end new text begin (e)new text end This subdivision does not apply to Social Security survivor benefits.

Sec. 6.

Minnesota Statutes 2014, section 268.085, subdivision 5, is amended to read:

Subd. 5.

Deductible earnings.

(a) If the applicant has earnings, including holiday pay, with respect to any week, from employment, covered employment, noncovered employment, self-employment, or volunteer work, equal to or in excess of the applicant's weekly unemployment benefit amount, the applicant is ineligible for unemployment benefits for that week.

(b) If the applicant has earnings, including holiday pay, with respect to any week, that is less than the applicant's weekly unemployment benefit amount, from employment, covered employment, noncovered employment, self-employment, or volunteer work, 50 percent of the earnings are deducted from the weekly unemployment benefit amount.

(c) No deduction is made from an applicant's weekly unemployment benefit amount for earnings from service in the National Guard or a United States military reserve unit or from direct service as a volunteer firefighter or volunteer ambulance service personnel. This exception to paragraphs (a) and (b) does not apply to on-call or standby pay provided to a volunteer firefighter or volunteer ambulance service personnel. No deduction is made for jury duty pay or for pay as an election judge.

(d) The applicant may report deductible earnings on continued requests for unemployment benefits at the next lower whole dollar amount.

(e) Deductible earnings does not include any money deleted text begin considereddeleted text end new text begin that isnew text end a deductible payment under subdivision 3deleted text begin , but includes all compensation considered wages under section 268.035, subdivision 29, and any other compensation considered earned income under state and federal law for income tax purposesdeleted text end .

Sec. 7.

new text begin REVISOR'S INSTRUCTION. new text end

new text begin (a) The revisor of statutes shall change "liability" to "liability for damages" in Minnesota Rules, part 3315.0555, subpart 1. new text end

new text begin (b) The revisor of statutes shall change "entitled to" to "eligible for" in Minnesota Statutes, section 268.085, subdivision 1, clause (6). new text end

new text begin (c) The revisor of statutes shall change "shall calculate" to "must calculate" in Minnesota Statutes, section 268.035, subdivision 23. new text end

new text begin (d) The revisor of statutes shall renumber Minnesota Statutes, section 268.035, subdivision 12d, to subdivision 12f. new text end

new text begin (e) The revisor of statutes shall reletter the paragraphs in Minnesota Statutes, section 268.085, subdivision 4, as follows: new text end

new text begin (1) paragraph (a) shall be relettered paragraph (c); and new text end

new text begin (2) paragraph (c) shall be relettered paragraph (a). new text end

new text begin (f) The revisor of statutes shall renumber the reference to "clause (29)" to "clause (27)" in Minnesota Statutes, section 268.046, subdivision 1. new text end

new text begin (g) The revisor of statutes shall renumber the reference to "clause (10)" to "clause (8)" in Minnesota Statutes, section 383C.19. new text end

Sec. 8.

new text begin EFFECTIVE DATE. new text end

new text begin This article is effective July 31, 2016, and applies to all matters pending a determination or a decision by an unemployment law judge. new text end

ARTICLE 11

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL POLICY

Section 1.

Minnesota Statutes 2014, section 268.051, subdivision 5, is amended to read:

Subd. 5.

Tax rate for new employers.

deleted text begin (a) Each new taxpaying employer that does not qualify for an experience rating under subdivision 3, except new employers in a high experience rating industry, must be assigned, for a calendar year, a tax rate the higher of (1) one percent, or (2) the tax rate computed, to the nearest 1/100 of a percent, by dividing the total amount of unemployment benefits paid all applicants during the 48 calendar months ending on June 30 of the prior calendar year by the total taxable wages of all taxpaying employers during the same period, plus the applicable base tax rate and any additional assessments under subdivision 2, paragraph (c). deleted text end

deleted text begin (b) Each new taxpaying employer in a high experience rating industry that does not qualify for an experience rating under subdivision 3, must be assigned, for a calendar year, a tax rate the higher of (1) that assigned under paragraph (a), or (2) the tax rate, computed to the nearest 1/100 of a percent, by dividing the total amount of unemployment benefits paid to all applicants from high experience rating industry employers during the 48 calendar months ending on June 30 of the prior calendar year by the total taxable wages of all high experience rating industry employers during the same period, to a maximum provided for under subdivision 3, paragraph (b), plus the applicable base tax rate and any additional assessments under subdivision 2, paragraph (c). deleted text end

deleted text begin (c) An employer is considered to be in a high experience rating industry if: deleted text end

deleted text begin (1) the employer is engaged in residential, commercial, or industrial construction, including general contractors; deleted text end

deleted text begin (2) the employer is engaged in sand, gravel, or limestone mining; deleted text end

deleted text begin (3) the employer is engaged in the manufacturing of concrete, concrete products, or asphalt; or deleted text end

deleted text begin (4) the employer is engaged in road building, repair, or resurfacing, including bridge and tunnels and residential and commercial driveways and parking lots. deleted text end

new text begin (a) Each new taxpaying employer that does not qualify for an experience rating under subdivision 3 must be assigned, for the calendar year, a tax rate equal to the average experience rating for the employer's industry, plus the applicable base tax rate and any additional assessments under subdivision 2, paragraph (c). The tax rate assigned may not be less than one percent. new text end

new text begin (b) The employer's industry, except for construction, is determined by the first two digits of the North American Industrial Classification System (NAICS). The construction industry is determined to five digits. For each calendar year the commissioner must compute, in accordance with subdivision 3, the average industry experience rating for the employer's industry. new text end

deleted text begin (d)deleted text end new text begin (c)new text end Regardless of any law to the contrary, a taxpaying employer must be assigned a tax rate under this subdivision if the employer had no taxable wages during the experience rating period under subdivision 3.

deleted text begin (e)deleted text end new text begin (d)new text end The commissioner must send to the new employer, by mail or electronic transmission, a determination of tax rate. An employer may appeal the determination of tax rate in accordance with deleted text begin the procedures indeleted text end subdivision 6, paragraph (c).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2018, and applies to tax rates assigned for the calendar year 2018 and thereafter. new text end

Sec. 2.

Minnesota Statutes 2015 Supplement, section 268.07, subdivision 3b, is amended to read:

Subd. 3b.

Limitations on applications and benefit accounts.

(a) An application for unemployment benefits is effective the Sunday of the calendar week that the application was filed. An application for unemployment benefits may be backdated one calendar week before the Sunday of the week the application was actually filed if the applicant requests the backdating deleted text begin atdeleted text end new text begin within seven calendar days of new text end the deleted text begin timedeleted text end new text begin datenew text end the application is filed. An application may be backdated only if the applicant was unemployed during the period of the backdating. If an individual attempted to file an application for unemployment benefits, but was prevented from filing an application by the department, the application is effective the Sunday of the calendar week the individual first attempted to file an application.

(b) A benefit account established under subdivision 2 is effective the date the application for unemployment benefits was effective.

(c) A benefit account, once established, may later be withdrawn only if:

(1) the applicant has not been paid any unemployment benefits on that benefit account; and

(2) a new application for unemployment benefits is filed and a new benefit account is established at the time of the withdrawal.

A determination or amended determination of eligibility or ineligibility issued under section 268.101, that was sent before the withdrawal of the benefit account, remains in effect and is not voided by the withdrawal of the benefit account.

(d) An application for unemployment benefits is not allowed before the Sunday following the expiration of the benefit year on a prior benefit account. Except as allowed under paragraph (c), an applicant may establish only one benefit account each 52 calendar weeks. This paragraph applies to benefit accounts established under any federal law or the law of any other state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 31, 2016, and applies to applications for unemployment benefits filed after that date. new text end

Sec. 3.

Minnesota Statutes 2014, section 268.095, subdivision 1, is amended to read:

Subdivision 1.

Quit.

An applicant who quit employment is ineligible for all unemployment benefits according to subdivision 10 except when:

(1) the applicant quit the employment because of a good reason caused by the employer as defined in subdivision 3;

(2) the applicant quit the employment to accept other covered employment that provided deleted text begin substantiallydeleted text end new text begin equal to or new text end better terms and conditions of employment, but the applicant did not work long enough at the second employment to have sufficient subsequent deleted text begin earningsdeleted text end new text begin wages paidnew text end to satisfy the period of ineligibility that would otherwise be imposed under subdivision 10 for quitting the first employment;

(3) the applicant quit the employment within 30 calendar days of beginning the employment deleted text begin becausedeleted text end new text begin andnew text end the employment was unsuitable deleted text begin for the applicantdeleted text end ;

(4) the employment was unsuitable deleted text begin for the applicantdeleted text end and the applicant quit to enter reemployment assistance training;

(5) the employment was part time and the applicant also had full-time employment in the base period, from which full-time employment the applicant separated because of reasons for which the applicant deleted text begin was helddeleted text end new text begin isnew text end not deleted text begin to bedeleted text end ineligible, and the wage credits from the full-time employment are sufficient to meet the minimum requirements to establish a benefit account under section 268.07;

(6) the applicant quit because the employer notified the applicant that the applicant was going to be laid off because of lack of work within 30 calendar days. An applicant who quit employment within 30 calendar days of a notified date of layoff because of lack of work is ineligible for unemployment benefits through the end of the week that includes the scheduled date of layoff;

(7) the applicant quit the employment (i) because the applicant's serious illness or injury made it medically necessary that the applicant quit; or (ii) in order to provide necessary care because of the illness, injury, or disability of an immediate family member of the applicant. This exception only applies if the applicant informs the employer of the medical problem and requests accommodation and no reasonable accommodation is made available.

If the applicant's serious illness is chemical dependency, this exception does not apply if the applicant was previously diagnosed as chemically dependent or had treatment for chemical dependency, and since that diagnosis or treatment has failed to make consistent efforts to control the chemical dependency.

This exception raises an issue of the applicant's being available for suitable employment under section 268.085, subdivision 1, that the commissioner must determine;

(8) the applicant's loss of child care for the applicant's minor child caused the applicant to quit the employment, provided the applicant made reasonable effort to obtain other child care and requested time off or other accommodation from the employer and no reasonable accommodation is available.

This exception raises an issue of the applicant's being available for suitable employment under section 268.085, subdivision 1, that the commissioner must determine;

(9) the applicant quit because domestic abuse, sexual assault, or stalking of the applicant or an immediate family member of the applicant, necessitated the applicant's quitting the employment.

For purposes of this subdivision:

(i) "domestic abuse" has the meaning given in section 518B.01;

(ii) "sexual assault" means an act that would constitute a violation of sections 609.342 to 609.3453 or 609.352; and

(iii) "stalking" means an act that would constitute a violation of section 609.749; or

(10) the applicant quit in order to relocate to accompany a spousenew text begin :new text end

new text begin (1) who is in the military; or new text end

new text begin (2) new text end whose job new text begin was transferred by the spouse's employer to a new new text end location deleted text begin changed deleted text end making it impractical for the applicant to commute.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 31, 2016, and applies to all matters pending a determination or a decision by an unemployment law judge. new text end

Sec. 4.

Minnesota Statutes 2014, section 268.101, subdivision 2, is amended to read:

Subd. 2.

Determination.

(a) The commissioner must determine any issue of ineligibility raised by information required from an applicant under subdivision 1, paragraph (a) or (c), and send to the applicant and any involved employer, by mail or electronic transmission, a document titled a determination of eligibility or a determination of ineligibility, as is appropriate. The determination on an issue of ineligibility as a result of a quit or a discharge of the applicant must state the effect on the employer under section 268.047. A determination must be made in accordance with this paragraph even if a notified employer has not raised the issue of ineligibility.

(b) The commissioner must determine any issue of ineligibility raised by an employer and send to the applicant and that employer, by mail or electronic transmission, a document titled a determination of eligibility or a determination of ineligibility as is appropriate. The determination on an issue of ineligibility as a result of a quit or discharge of the applicant must state the effect on the employer under section 268.047.

If a base period employer:

(1) was not the applicant's most recent employer before the application for unemployment benefits;

(2) did not employ the applicant during the six calendar months before the application for unemployment benefits; and

(3) did not raise an issue of ineligibility as a result of a quit or discharge of the applicant within ten calendar days of notification under subdivision 1, paragraph (b);

then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two weeks following the week that the issue of ineligibility as a result of a quit or discharge of the applicant was raised by the employer.

A communication from an employer must specifically set out why the applicant should be determined ineligible for unemployment benefits for that communication to be considered to have raised an issue of ineligibility for purposes of this section. A statement of "protest" or a similar term without more information does not constitute raising an issue of ineligibility for purposes of this section.

(c) Subject to section 268.031, an issue of ineligibility is determined based upon that information required of an applicant, any information that may be obtained from an applicant or employer, and information from any other source.

(d) Regardless of the requirements of this subdivision, the commissioner is not required to send to an applicant a copy of the determination where the applicant has satisfied a period of ineligibility because of a quit or a discharge under section 268.095, subdivision 10.

(e) The commissioner may issue a determination on an issue of ineligibility deleted text begin at any timedeleted text end within 24 months from the establishment of a benefit account based upon information from any source, even if the issue of ineligibility was not raised by the applicant or an employer. deleted text begin This paragraph does not prevent the imposition of a penalty ondeleted text end

new text begin Ifnew text end an applicant new text begin obtained unemployment benefits through fraud new text end under section 268.18, subdivision 2, deleted text begin or 268.182deleted text end new text begin a determination of ineligibility may be issued within 48 months of the establishment of the benefit accountnew text end .

(f) A determination of eligibility or determination of ineligibility is final unless an appeal is filed by the applicant or deleted text begin notifieddeleted text end employer within 20 calendar days after sending. The determination must contain a prominent statement indicating the consequences of not appealing. Proceedings on the appeal are conducted in accordance with section 268.105.

(g) An issue of ineligibility required to be determined under this section includes any question regarding the denial or allowing of unemployment benefits under this chapter except for issues under section 268.07. An issue of ineligibility for purposes of this section includes any question of effect on an employer under section 268.047.

deleted text begin (h) Except for issues of ineligibility as a result of a quit or discharge of the applicant, the employer will be (1) sent a copy of the determination of eligibility or a determination of ineligibility, or (2) considered an involved employer for purposes of an appeal under section 268.105, only if the employer raised the issue of ineligibility. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 31, 2016, and applies to all matters pending a determination. new text end

Sec. 5.

Minnesota Statutes 2014, section 268.182, subdivision 2, is amended to read:

Subd. 2.

Administrative penalties.

new text begin (a) new text end Any applicant who knowingly makes a false statement or representation, who knowingly fails to disclose a material fact, or who makes a false statement or representation without a good faith belief as to the correctness of the statement or representation, in order to obtain or in an attempt to obtain unemployment benefits may be assessed, in addition to any other penalties, an administrative penalty of being ineligible for unemployment benefits for 13 to 104 weeks.

new text begin (b)new text end A determination of ineligibility setting out the weeks the applicant is ineligible must be sent to the applicant by mail or electronic transmission.new text begin A determination of ineligibility under this subdivision may be issued within 48 months of the establishment of the benefit account upon which the unemployment benefits were obtained, or attempted to be obtained.new text end Unless an appeal is filed within 20 calendar days of sending, the determination is final. Proceedings on the appeal are conducted in accordance with section 268.105.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 31, 2016 and applies to all matters pending a determination. new text end

ARTICLE 12

EQUITY

Section 1.

new text begin APPROPRIATIONS.new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this article. The appropriations are from the general fund, or another named fund, and are available for the fiscal year indicated for each purpose. The figures "2016" and "2017" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2016, or June 30, 2017, respectively. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2016 new text end new text begin 2017 new text end

Sec. 2.

new text begin EQUITY APPROPRIATIONS new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 35,000,000 new text end

new text begin Subd. 2. new text end

new text begin Department of Employment and Economic Development new text end

new text begin -0- new text end new text begin 34,250,000 new text end

new text begin (a) $1,500,000 in fiscal year 2017 is for grants to the Neighborhood Development Center for small business programs. For fiscal year 2018 and thereafter, the base amount is $750,000 per year. new text end

new text begin Of this amount, $810,000 is for the small business development program, including: new text end

new text begin (1) $620,000 for training, lending, and business services for aspiring business owners, and expansion of services for immigrants in suburban communities; and new text end

new text begin (2) $190,000 is for Neighborhood Development Center model outreach and training activities in greater Minnesota. new text end

new text begin Of this amount, $690,000 is for grants for the small business incubator program, including: new text end

new text begin (1) $420,000 for capital improvements to existing small business incubators; and new text end

new text begin (2) $270,000 for the creation of two additional small business incubators. new text end

new text begin (b) $2,000,000 in fiscal year 2017 is for a competitive grant program to provide grants to organizations that provide support services for individuals, such as job training, employment preparation, internships, job assistance to fathers, financial literacy, academic and behavioral interventions for low-performing students, and youth intervention. Grants made under this section must focus on low-income communities, young adults from families with a history of intergenerational poverty, and communities of color. All grant recipients are subject to the requirements of section 11. Of this amount, up to five percent is for administration and monitoring of the program. For fiscal year 2018 and thereafter, the base amount is $1,500,000 per year. new text end

new text begin (c) $1,000,000 in fiscal year 2017 is for a grant to YWCA St. Paul to provide job training services and workforce development programs and services, including job skills training and counseling. For fiscal year 2018 and thereafter, the base amount is $250,000 per year. new text end

new text begin (d) $750,000 in fiscal year 2017 is for a grant to the YWCA of Minneapolis to provide economically challenged individuals the jobs skills training, career counseling, and job placement assistance necessary to secure a child development associate credential and to have a career path in early childhood education. For fiscal year 2018 and thereafter, the base amount is $375,000 per year. new text end

new text begin (e) $4,250,000 in fiscal year 2017 is for a grant to EMERGE Community Development, in collaboration with community partners, for services targeting Minnesota communities with the highest concentrations of African and African-American joblessness, based on the most recent census tract data, to provide employment readiness training, credentialed training placement, job placement and retention services, supportive services for hard-to-employ individuals, and a general education development fast track and adult diploma program. For fiscal year 2018 and thereafter, the base amount is $1,000,000 per year. new text end

new text begin (f) $2,500,000 in fiscal year 2017 is for a grant to the Metropolitan Economic Development Association (MEDA) for statewide business development and assistance services, including services to entrepreneurs with businesses that have the potential to create job opportunities for unemployed and underemployed people, with an emphasis on minority-owned businesses. For fiscal year 2018 and thereafter, the base amount is $1,175,000 per year. new text end

new text begin Of this appropriation, $1,600,000 is for a revolving loan fund to provide additional minority-owned businesses with access to capital. new text end

new text begin (g) $1,000,000 in fiscal year 2017 is for a grant to the Minneapolis Foundation for a strategic intervention program designed to target and connect program participants to meaningful, sustainable living-wage employment. new text end

new text begin (h) $1,200,000 in fiscal year 2017 is for performance grants under Minnesota Statutes, section 116J.8747, to Twin Cities R!SE to provide training to hard-to-train individuals. For fiscal year 2018 and thereafter, the base amount is $600,000 per year. Of the amount appropriated in fiscal year 2017, $407,000 is for a grant to Twin Cities R!SE, in collaboration with Metro Transit and Hennepin Technical College, for the Metro Transit technician training program. This is a onetime appropriation and is available until June 30, 2019. new text end

new text begin (i) $2,500,000 in fiscal year 2017 is for the creation of additional multiemployer, sector-based career connections pathways. This is a onetime appropriation and is available until June 30, 2019. $2,200,000 of this amount is for a grant to Hennepin County to establish pathways using the Hennepin Career Connections framework. $300,000 of this amount is for a grant to Hennepin County to establish a pilot program based on the career connections pathways framework outside the seven-county metropolitan area, in collaboration with another local unit of government. new text end

new text begin (j) $1,500,000 in fiscal year 2017 is for the high-wage, high-demand, nontraditional jobs grant program under Minnesota Statutes, section 116L.99. Of this amount, up to five percent is for administration and monitoring of the program. For fiscal year 2018 and thereafter, the base amount is $1,000,000 per year. new text end

new text begin (k) $1,000,000 in fiscal year 2017 is for the youth-at-work competitive grant program under Minnesota Statutes, section 116L.562, subdivision 3. Of this amount, up to five percent is for administration and monitoring of the program. new text end

new text begin (l) $2,000,000 in fiscal year 2017 is for a competitive grant program for grants to organizations providing services to relieve economic disparities in the Southeast Asian community through workforce recruitment, development, job creation, assistance of smaller organizations to increase capacity, and outreach. Grant recipients under this paragraph are subject to the requirements of section 11. Of this amount, up to five percent is for administration and monitoring of the program. For fiscal year 2018 and thereafter, the base amount is $1,000,000 per year. new text end

new text begin (m) $1,500,000 in fiscal year 2017 is for a grant to Latino Communities United in Service (CLUES) to expand culturally tailored programs that address employment and education skill gaps for working parents and underserved youth by providing new job skills training to stimulate higher wages for low-income people, family support systems designed to reduce intergenerational poverty, and youth programming to promote educational advancement and career pathways. At least 50 percent of this amount must be used for programming targeted at greater Minnesota. For fiscal year 2018 and thereafter, the base amount is $750,000 per year. new text end

new text begin (n) $880,000 in fiscal year 2017 is for a grant to the American Indian Opportunities and Industrialization Center, in collaboration with the Northwest Indian Community Development Center, to reduce academic disparities for American Indian students and adults. The grant funds may be used to provide: new text end

new text begin (1) student tutoring and testing support services; new text end

new text begin (2) training in information technology; new text end

new text begin (3) assistance in obtaining a GED; new text end

new text begin (4) remedial training leading to enrollment in a postsecondary higher education institution; new text end

new text begin (5) real-time work experience in information technology fields; and new text end

new text begin (6) contextualized adult basic education. new text end

new text begin After notification to the legislature, the commissioner may transfer this appropriation to the commissioner of education. For fiscal year 2018 and thereafter, the base amount is $250,000 per year. new text end

new text begin (o) $500,000 in fiscal year 2017 is for a grant to the White Earth Nation for the White Earth Nation Integrated Business Development System to provide business assistance with workforce development, outreach, technical assistance, infrastructure and operational support, financing, and other business development activities. For fiscal year 2018 and thereafter, the base amount is $125,000 per year. new text end

new text begin (p) $500,000 is for the Minnesota emerging entrepreneur program under Minnesota Statutes, section 116M.18. Of this amount, up to five percent is for administration and monitoring of the program. For fiscal year 2018 and thereafter, the base amount is $750,000 per year. new text end

new text begin (q) $1,000,000 is for the Pathways to Prosperity adult workforce development competitive grant program. When awarding grants under this paragraph, the commissioner may give preference to any previous grantee with demonstrated success in job training and placement for hard-to-train individuals. A portion of the grants may provide year-end educational and experiential learning opportunities for teens and young adults that provide careers in the construction industry. Of this amount, up to five percent is for administration and monitoring of the program. new text end

new text begin (r) $320,000 is for the capacity building grant program to assist nonprofit organizations offering or seeking to offer workforce development and economic development programming. For fiscal year 2018 and thereafter, the base amount is $1,000,000 per year. new text end

new text begin (s) $2,000,000 in fiscal year 2017 is for grants for positive youth development, community engagement, legal services, and capacity building for community-based organizations serving Somali youth, including youth engagement, prevention, and intervention activities that help build the resiliency of the Somali Minnesotan community and address challenges facing Somali youth. Of this amount, $1,000,000 is for a grant to Youthprise for activities provided in this paragraph. Funded projects must provide culturally and linguistically relevant services. To the maximum extent possible, 50 percent of the funding must be distributed in greater Minnesota, and 50 percent of funding must be distributed within the metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 2. Of the amount appropriated for grants to be awarded by the commissioner, up to five percent is for administration and monitoring of the program. This is a onetime appropriation and is available until June 30, 2019. new text end

new text begin (t) $600,000 in fiscal year 2017 is for a grant to Ujamaa Place for job training, employment preparation, internships, education, training in the construction trades, housing, and organizational capacity building. new text end

new text begin (u) $1,750,000 in fiscal year 2017 is for a grant to Enterprise Minnesota, Inc. Of this amount, $875,000 is for the small business growth acceleration program under Minnesota Statutes, section 116O.115, and $875,000 is for operations under Minnesota Statutes, sections 116O.01 to 116O.061. For fiscal year 2018 and thereafter, the base amount is $875,000 per year. new text end

new text begin (v) $1,000,000 in fiscal year 2017 is for grants to centers for independent living under Minnesota Statutes, section 268A.11. For fiscal year 2018 and thereafter, the base amount is $500,000 per year. new text end

new text begin (w) $1,000,000 in fiscal year 2017 is from the general fund for State Services for the Blind. Funds appropriated must be used to provide services for senior citizens who are becoming blind. At least half of the funds appropriated must be used to provide training services for seniors who are becoming blind. Training services must provide independent living skills to seniors who are becoming blind to allow them to continue to live independently in their homes. For fiscal year 2018 and thereafter, the base amount is $500,000 per year. new text end

new text begin (x) $2,000,000 in fiscal year 2017 is from the general fund for a grant to the Construction Careers Foundation for the construction career pathway initiative to provide year-round educational and experiential learning opportunities for teens and young adults under the age of 21 that lead to careers in the construction industry. For fiscal year 2018 and thereafter, the base amount is $1,000,000 per year. Grant funds must be used to: new text end

new text begin (1) increase construction industry exposure activities for middle school and high school youth, parents, and counselors to reach a more diverse demographic and broader statewide audience. This requirement includes, but is not limited to, an expansion of programs to provide experience in different crafts to youth and young adults throughout the state; new text end

new text begin (2) increase the number of high schools in Minnesota offering construction classes during the academic year that utilize a multicraft curriculum; new text end

new text begin (3) increase the number of summer internship opportunities; new text end

new text begin (4) enhance activities to support graduating seniors in their efforts to obtain employment in the construction industry; new text end

new text begin (5) increase the number of young adults employed in the construction industry and ensure that they reflect Minnesota's diverse workforce; and new text end

new text begin (6) enhance an industrywide marketing campaign targeted to youth and young adults about the depth and breadth of careers within the construction industry. new text end

new text begin Programs and services supported by grant funds must give priority to individuals and groups that are economically disadvantaged or historically underrepresented in the construction industry, including but not limited to women, veterans, and members of minority and immigrant groups. new text end

new text begin Subd. 3. new text end

new text begin Minnesota Housing Finance Agency new text end

new text begin -0- new text end new text begin 750,000 new text end

new text begin $500,000 is for a grant to Build Wealth MN to provide a family stabilization plan program including program outreach, financial literacy education, and budget and debt counseling. new text end

new text begin $250,000 is a onetime appropriation for grants to eligible applicants to create or expand risk mitigation programs to reduce landlord financial risks for renting to persons eligible under Minnesota Statutes, section 462A.204. Eligible programs may reimburse landlords for costs including but not limited to nonpayment of rent, or damage costs above those costs covered by security deposits. The agency may give higher priority to applicants that can demonstrate a matching amount of money by a local unit of government, business, or nonprofit organization. Grantees must establish a procedure to review and validate claims and reimbursements under this grant program. new text end

Sec. 3.

Minnesota Statutes 2014, section 16C.10, subdivision 6, is amended to read:

Subd. 6.

Expenditures under specified amounts.

A competitive solicitation process described in this chapter is not required for the acquisition of goods, services, construction, and utilities in an amount of $5,000 or lessnew text begin or as authorized by section 16C.16, subdivisions 6, paragraph (b), 6a, paragraph (b), and 7, paragraph (b)new text end .

Sec. 4.

Minnesota Statutes 2014, section 16C.16, subdivision 6, is amended to read:

Subd. 6.

Purchasing methods.

(a) The commissioner may award up to a six percent preference deleted text begin in the amount biddeleted text end for specified goods or services to small targeted group businesses.

new text begin (b) The commissioner may award a contract for goods, services, or construction directly to a small business or small targeted group business without going through a competitive solicitation process up to a total contract award value, including extension options, of $25,000. new text end

deleted text begin (b)deleted text end new text begin (c)new text end The commissioner may designate a purchase of goods or services for award only to small businesses or small targeted group businesses if the commissioner determines that at least three small businesses or small targeted group businesses are likely to deleted text begin biddeleted text end new text begin respond to a solicitationnew text end .

deleted text begin (c)deleted text end new text begin (d)new text end The commissioner, as a condition of awarding a construction contract or approving a contract for professional or technical services, may set goals that require the prime contractor to subcontract a portion of the contract to small businesses or small targeted group businesses. The commissioner must establish a procedure for granting waivers from the subcontracting requirement when qualified small businesses or small targeted group businesses are not reasonably available. The commissioner may establish financial incentives for prime contractors who exceed the goals for use of small business or small targeted group business subcontractors and financial penalties for prime contractors who fail to meet goals under this paragraph. The subcontracting requirements of this paragraph do not apply to prime contractors who are small businesses or small targeted group businesses.

Sec. 5.

Minnesota Statutes 2015 Supplement, section 16C.16, subdivision 6a, is amended to read:

Subd. 6a.

Veteran-owned small businesses.

(a) Except when mandated by the federal government as a condition of receiving federal funds, the commissioner shall award up to a six percent preference, but no less than the percentage awarded to any other group under this section, deleted text begin in the amount biddeleted text end on state procurement to certified small businesses that are majority-owned and operated by veterans.

new text begin (b) The commissioner may award a contract for goods, services, or construction directly to a veteran-owned small business without going through a competitive solicitation process up to a total contract award value, including extension options, of $25,000. new text end

new text begin (c) The commissioner may designate a purchase of goods or services for award only to a veteran-owned small business if the commissioner determines that at least three veteran-owned small businesses are likely to respond to a solicitation. new text end

new text begin (d) The commissioner, as a condition of awarding a construction contract or approving a contract for professional or technical services, may set goals that require the prime contractor to subcontract a portion of the contract to a veteran-owned small business. The commissioner must establish a procedure for granting waivers from the subcontracting requirement when qualified veteran-owned small businesses are not reasonably available. The commissioner may establish financial incentives for prime contractors who exceed the goals for use of veteran-owned small business subcontractors and financial penalties for prime contractors who fail to meet goals under this paragraph. The subcontracting requirements of this paragraph do not apply to prime contractors who are veteran-owned small businesses. new text end

deleted text begin (b)deleted text end new text begin (e)new text end The purpose of this designation is to facilitate the transition of veterans from military to civilian life, and to help compensate veterans for their sacrifices, including but not limited to their sacrifice of health and time, to the state and nation during their military service, as well as to enhance economic development within Minnesota.

deleted text begin (c)deleted text end new text begin (f)new text end Before the commissioner certifies that a small business is majority-owned and operated by a veteran, the commissioner of veterans affairs must verify that the owner of the small business is a veteran, as defined in section 197.447.

Sec. 6.

Minnesota Statutes 2014, section 16C.16, subdivision 7, is amended to read:

Subd. 7.

Economically disadvantaged areas.

(a) deleted text begin Except as otherwise provided in paragraph (b),deleted text end The commissioner may award up to a six percent preference deleted text begin in the amount biddeleted text end on state procurement to small businesses located in an economically disadvantaged area.

deleted text begin (b) The commissioner may award up to a four percent preference in the amount bid on state construction to small businesses located in an economically disadvantaged area. deleted text end

new text begin (b) The commissioner may award a contract for goods, services, or construction directly to a small business located in an economically disadvantaged area without going through a competitive solicitation process up to a total contract award value, including extension options, of $25,000. new text end

new text begin (c) The commissioner may designate a purchase of goods or services for award only to a small business located in an economically disadvantaged area if the commissioner determines that at least three small businesses located in an economically disadvantaged area are likely to respond to a solicitation. new text end

new text begin (d) The commissioner, as a condition of awarding a construction contract or approving a contract for professional or technical services, may set goals that require the prime contractor to subcontract a portion of the contract to a small business located in an economically disadvantaged area. The commissioner must establish a procedure for granting waivers from the subcontracting requirement when qualified small businesses located in an economically disadvantaged area are not reasonably available. The commissioner may establish financial incentives for prime contractors who exceed the goals for use of subcontractors that are small businesses located in an economically disadvantaged area and financial penalties for prime contractors who fail to meet goals under this paragraph. The subcontracting requirements of this paragraph do not apply to prime contractors who are small businesses located in an economically disadvantaged area. new text end

deleted text begin (c)deleted text end new text begin (e)new text end A business is located in an economically disadvantaged area if:

(1) the owner resides in or the business is located in a county in which the median income for married couples is less than 70 percent of the state median income for married couples;

(2) the owner resides in or the business is located in an area designated a labor surplus area by the United States Department of Labor; or

(3) the business is a certified rehabilitation facility or extended employment provider as described in chapter 268A.

deleted text begin (d)deleted text end new text begin (f)new text end The commissioner may designate one or more areas designated as targeted neighborhoods under section 469.202 or as border city enterprise zones under section 469.166 as economically disadvantaged areas for purposes of this subdivision if the commissioner determines that this designation would further the purposes of this section. If the owner of a small business resides or is employed in a designated area, the small business is eligible for any preference provided under this subdivision.

deleted text begin (e)deleted text end new text begin (g)new text end The Department of Revenue shall gather data necessary to make the determinations required by paragraph deleted text begin (c)deleted text end new text begin (e)new text end , clause (1), and shall annually certify counties that qualify under paragraph deleted text begin (c)deleted text end new text begin (e)new text end , clause (1). An area designated a labor surplus area retains that status for 120 days after certified small businesses in the area are notified of the termination of the designation by the United States Department of Labor.

Sec. 7.

Minnesota Statutes 2014, section 16C.16, is amended by adding a subdivision to read:

new text begin Subd. 7a. new text end

new text begin Designated purchases and subcontractor goals. new text end

new text begin (a) When designating purchases directly to a business in accordance with this section, the commissioner may also designate a purchase of goods or services directly to any combination of small businesses, small targeted group businesses, veteran-owned small businesses or small businesses located in an economically disadvantaged area if the commissioner determines that at least three businesses in two or more of the disadvantaged business categories are likely to respond. new text end

new text begin (b) When establishing subcontractor goals under this section, the commissioner may set goals that require the prime contractor to subcontract a portion of the contract to any combination of a small business, small targeted group business, veteran-owned small business, or small business located in an economically disadvantaged area. new text end

Sec. 8.

Minnesota Statutes 2014, section 16C.16, subdivision 11, is amended to read:

Subd. 11.

Procurement procedures.

All laws and rules pertaining to solicitations, bid evaluations, contract awards, and other procurement matters apply equally to procurements deleted text begin designated for small businesses or small targeted group businessesdeleted text end new text begin involving any small business, small targeted group business, veteran-owned business, or small business located in an economically disadvantaged areanew text end . deleted text begin In the event of conflict with other rules, section 16C.15 and rules adopted under it govern, if section 16C.15 applies. If it does not apply, sections 16C.16 to 16C.21 and rules adopted under those sections govern.deleted text end

Sec. 9.

new text begin [116L.562] YOUTH-AT-WORK GRANT PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner shall award grants to eligible organizations for the purpose of providing workforce development and training opportunities to economically disadvantaged or at-risk youth ages 14 to 24. new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin For purposes of this section: new text end

new text begin (1) "eligible organization" or "eligible applicant" means a local government unit, nonprofit organization, community action agency, or a public school district; new text end

new text begin (2) "at-risk youth" means youth classified as at-risk under section 116L.56, subdivision 2; and new text end

new text begin (3) "economically disadvantaged" means youth who are economically disadvantaged as defined in United States Code, title 29, section 1503. new text end

new text begin Subd. 3. new text end

new text begin Competitive grant awards. new text end

new text begin (a) In awarding competitive grants, priority shall be given to programs that: new text end

new text begin (1) provide students with information about education and training requirements for careers in high-growth, in-demand occupations; new text end

new text begin (2) serve youth from communities of color who are under represented in the workforce; or new text end

new text begin (3) serve youth with disabilities. new text end

new text begin (b) Eligible organizations must have demonstrated effectiveness in administering youth workforce programs and must leverage nonstate or private sector funds. new text end

new text begin (c) New eligible applicants must be youth-serving organizations with significant capacity and demonstrable youth development experience and outcomes to operate a youth workforce development project. new text end

new text begin (d) If a program is not operated by a local unit of government or a workforce development board, the grant recipient must coordinate the program with the local workforce development board. new text end

new text begin Subd. 4. new text end

new text begin Reports. new text end

new text begin Each grant recipient shall report to the commissioner in a format to be determined by commissioner. new text end

Sec. 10.

Minnesota Statutes 2014, section 116L.99, is amended to read:

116L.99 WOMEN AND HIGH-WAGE, HIGH-DEMAND, NONTRADITIONAL JOBS GRANT PROGRAM.

Subdivision 1.

Definitions.

(a) For the purpose of this section, the following terms have the meanings given.

(b) "Commissioner" means the commissioner of employment and economic development.

(c) "Eligible organization" includes, but is not limited to:

(1) community-based organizations experienced in serving women;

(2) employers;

(3) business and trade associations;

(4) labor unions and employee organizations;

(5) registered apprenticeship programs;

(6) secondary and postsecondary education institutions located in Minnesota; and

(7) workforce and economic development agencies.

(d) "High-wage, high-demand" means occupations that represent at least 0.1 percent of total employment in the base year, have an annual median salary which is higher than the average for the current year, and are projected to have more total openings as a share of employment than the average.

(e) "Low-income" means income less than 200 percent of the federal poverty guideline adjusted for a family size of four.

(f) "Nontraditional occupations" means those occupations in which women make up less than 25 percent of the workforce as defined under United States Code, title 20, section 2302.

(g) "Registered apprenticeship program" means a program registered under United States Code, title 29, section 50.

new text begin (h) "STEM" means science, technology, engineering, and math. new text end

new text begin (i) "Women of color" means females age 18 and older who are American Indian, Asian, Black, or Hispanic. new text end

new text begin (j) "Girls of color" means females under age 18 who are American Indian, Asian, Black, or Hispanic. new text end

Subd. 2.

Grant program.

The commissioner shall establish the women and high-wage, high-demand, nontraditional jobs grant program to increase the number of women in high-wage, high-demand, nontraditional occupations. The commissioner shall make grants to eligible organizations for programs that encourage and assist women to enter high-wage, high-demand, nontraditional occupations including but not limited to those in the skilled trades, deleted text begin science, technology, engineering,deleted text end and deleted text begin math (STEM)deleted text end new text begin STEMnew text end occupations.new text begin The commissioner must give priority to programs that encourage and assist women of color to enter high-wage, high-demand, nontraditional occupations and STEM occupations.new text end

Subd. 3.

Use of funds.

(a) Grant funds awarded under this section may be used for:

(1) recruitment, preparation, placement, and retention of women, including new text begin women of color, new text end low-income women and women over 50 years old, in registered apprenticeships, postsecondary education programs, on-the-job training, and permanent employment in high-wage, high-demand, nontraditional occupations;

(2) secondary or postsecondary education or other training to prepare women to succeed in high-wage, high-demand, nontraditional occupations. Activities under this clause may be conducted by the grantee or in collaboration with another institution, including but not limited to a public or private secondary or postsecondary school;

(3) innovative, hands-on, best practices that stimulate interest in high-wage, high-demand, nontraditional occupations among girls, increase awareness among girls about opportunities in high-wage, high-demand, nontraditional occupations, or increase access to secondary programming leading to jobs in high-wage, high-demand, nontraditional occupations. Best practices include but are not limited to mentoring, internships, or apprenticeships for girls in high-wage, high-demand, nontraditional occupations;

(4) training and other staff development for job seeker counselors and Minnesota family investment program (MFIP) caseworkers on opportunities in high-wage, high-demand, nontraditional occupations;

(5) incentives for employers and sponsors of registered apprenticeship programs to retain women in high-wage, high-demand, nontraditional occupations for more than one year;

(6) training and technical assistance for employers to create a safe and healthy workplace environment designed to retain and advance women, including best practices for addressing sexual harassment, and to overcome gender inequity among employers and registered apprenticeship programs;

(7) public education and outreach activities to overcome stereotypes about women in high-wage, high-demand, nontraditional occupations, including the development of educational and marketing materials; deleted text begin anddeleted text end

(8) new text begin services to new text end support deleted text begin fordeleted text end women in high-wage, high-demand, nontraditional occupations including but not limited to assistance with new text begin balancing work responsibilities; skills training and education; family caregiving; financial assistance for child care, transportation, and safe and stable housing; new text end workplace issues resolutionnew text begin ;new text end and access to advocacy assistance and servicesnew text begin ; andnew text end

new text begin (9) recruitment, participation, and support of girls of color in approved training programs or a valid apprenticeship program subject to section 181A.07, subdivision 7new text end .

(b) Grant applications must include detailed information about how the applicant plans to:

(1) increase women's participation in high-wage, high-demand occupations in which women are currently underrepresented in the workforce;

(2) comply with the requirements under subdivision 3; deleted text begin anddeleted text end

(3) use grant funds in conjunction with funding from other public or private sourcesdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (4) collaborate with existing, successful programs for training, education, recruitment, preparation, placement, and retention of women of color in high-wage, high-demand, nontraditional occupations and STEM occupations. new text end

(c) In awarding grants under this subdivision, the commissioner shall give priority to eligible organizations:

(1) with demonstrated success in recruiting and preparing women, especially low-income womennew text begin , women of color,new text end and women over 50 years old, for high-wage, high-demand, nontraditional occupations; and

(2) that leverage additional public and private resources.

(d) At least 50 percent of total grant funds must be awarded to programs providing services and activities targeted to low-income womennew text begin and women of colornew text end .

(e) The commissioner of employment and economic development in conjunction with the commissioner of labor and industry shall monitor the use of funds under this section, collect and compile information on the activities of other state agencies and public or private entities that have purposes similar to those under this section, and identify other public and private funding available for these purposes.

new text begin (f) By January 15, 2019, and each January 15 thereafter, the commissioner must submit a report to the chairs and ranking minority members of the committees of the house of representatives and the senate having jurisdiction over workforce development that details the use of grant funds. If data is available, the report must contain data that is disaggregated by race, cultural groups, family income, age, geographical location, migrant or foreign immigrant status, primary language, whether the participant is an English learner under Minnesota Statutes, section 124D.59, disability, and status of homelessness. new text end

Sec. 11.

new text begin REQUIREMENTS FOR GRANTS TO INDIVIDUALLY SPECIFIED RECIPIENTS. new text end

new text begin (a) Application. This section applies to any grant funded under this act where the recipient of the grant is individually specified in this act. The commissioner serving as the fiscal agent for the grant must ensure compliance with the requirements of this section, and all applicable requirements under existing law, including applicable grants management policies and procedures established by the Office of Grants Management. new text end

new text begin (b) Prerequisites. Before any funding is provided to the grant recipient, the recipient must provide the fiscal agent with a description of the following information in a grant application: new text end

new text begin (1) the purpose of the grant, including goals, priorities, and measurable outcomes; new text end

new text begin (2) eligibility requirements for individuals who will be served by the grant program; new text end

new text begin (3) the proposed geographic service areas for individuals served by the grant; and new text end

new text begin (4) the reporting requirements. new text end

new text begin These requirements are in addition to any requirements under existing laws and policies. new text end

new text begin (c) Financial Review. Office of Grants Management Operating Policy and Procedure number 08-06, titled "Policy on the Financial Review of Nongovernmental Organizations" applies in pertinent part to all grants covered by paragraph (a). new text end

new text begin (d) Reporting to Fiscal Agent. In addition to meeting any reporting requirements included in the grant agreement, grant recipients subject to this section must provide the following information to the commissioner serving as fiscal agent: new text end

new text begin (1) a detailed accounting of the use of any grant proceeds; new text end

new text begin (2) a description of program outcomes to date, including performance measured against indicators specified in the grant agreement, including, but not limited to, job creation, employment activity, wage information, business formation or expansion, and academic performance; and new text end

new text begin (3) the portion of the grant, if any, spent on the recipient's operating expenses. new text end

new text begin Grant recipients must report the information required under this paragraph to the fiscal agent within one year after receiving any portion of the grant, annually thereafter, and within 30 days following the use of all funds provided under the grant. new text end

new text begin (e) Reporting to Legislature. Beginning January 15, 2017, a commissioner serving as a fiscal agent for a grant subject to this section must submit a report containing the information provided by the grant recipients to the chairs and ranking minority members of the legislative committees and budget divisions with jurisdiction over the agency serving as fiscal agent for the grant. The report submitted under this section must also include the commissioner's summary of the use of grant proceeds, and an analysis of the grant recipients' success in meeting the goals, priorities, and measurable outcomes specified for the grant. An updated version of this report must be submitted on January 15 of each succeeding year until January 15 in the year following the date when all of the grant funds have been spent. new text end

Sec. 12.

new text begin ETHNIC COUNCIL REVIEW. new text end

new text begin The commissioners of each agency appropriated money in this article may consult with the four ethnic councils under Minnesota Statutes, sections 3.922 and 15.0145, regarding implementation of the programs funded under this article. Any request for proposals developed by a state agency as a result of this article may be reviewed by the four ethnic councils prior to public submission. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

ARTICLE 13

STATE DEPARTMENTS AND VETERANS

Section 1.

new text begin APPROPRIATIONS.new text end

new text begin The sums shown in the columns marked "Appropriations" are added to the appropriations in Laws 2015, chapter 77, article 1, to the agencies and for the purposes specified in this article. The appropriations are from the general fund or another named fund. The figures "2016" and "2017" used in this article mean that the addition to the appropriation listed under them are available for the fiscal year ending June 30, 2016, or June 30, 2017, respectively. Supplemental appropriations for the fiscal year ending June 30, 2016, are effective the day following final enactment. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2016 new text end new text begin 2017 new text end

Sec. 2.

new text begin ADMINISTRATION new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 1,198,000 new text end

new text begin Subd. 2. new text end

new text begin Government and Citizen Services - Olmstead Plan Increased Capacity new text end

new text begin -0- new text end new text begin 148,000 new text end

new text begin For administrative costs to expand services provided under the Olmstead Plan serving people with disabilities. new text end

new text begin Subd. 3. new text end

new text begin Fiscal Agent - Veterans' Voices new text end

new text begin -0- new text end new text begin 50,000 new text end

new text begin For a grant to the Association of Minnesota Public Educational Radio Stations for statewide programming to promote the Veterans' Voices program. This is a onetime appropriation. new text end

new text begin Subd. 4. new text end

new text begin Accounting and Procurement Software new text end

new text begin -0- new text end new text begin 1,000,000 new text end

new text begin $1,000,000 is to assess, upgrade, and enhance accounting and procurement software to facilitate targeted group business utilization and data reporting. This is a onetime appropriation and is available until June 30, 2019. new text end

Sec. 3.

new text begin MINNESOTA MANAGEMENT AND BUDGET new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 2,018,000 new text end

new text begin Of this amount, $2,000,000 is for statewide information technology systems and is available until June 30, 2018. This is a onetime appropriation. new text end

new text begin Of this amount, $18,000 is to the Office of Economic Analysis for the revenue uncertainty report under Minnesota Statutes, section 16A.103, subdivision 1h. The base is $9,000 each fiscal year beginning in fiscal year 2018. new text end

Sec. 4.

new text begin REVENUE new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 1,333,000 new text end

new text begin Tax System Management. $500,000 is for tax refund fraud protection software and services. new text end

new text begin $833,000 is for (1) communication and outreach; and (2) technology, audit, and fraud staff. new text end

new text begin $1,506,000 is added to the base in fiscal year 2018 and $1,506,000 in fiscal year 2019. new text end

Sec. 5.

new text begin AMATEUR SPORTS COMMISSION new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 10,000,000 new text end

new text begin Mighty Ducks. For the purposes of making grants under Minnesota Statutes, section 240A.09, paragraph (b). This appropriation is a onetime appropriation and is added to the appropriations in Laws 2015, chapter 77, article 1, section 18, and Laws 2015, First Special Session chapter 5, article 1, section 9. new text end

Sec. 6.

new text begin HUMANITIES CENTER new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 95,000 new text end

new text begin To expand education efforts around the Veterans' Voices program, and to work with veterans to educate and engage the community regarding veterans' contributions, knowledge, skills, and experiences through the Veterans' Voices program. This is a onetime appropriation. new text end

Sec. 7.

new text begin MINNESOTA STATE RETIREMENT SYSTEM new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 3,000,000 new text end

new text begin Judges Retirement Plan. In fiscal year 2017 for transfer to the judges' retirement fund defined in Minnesota Statutes, section 490.123. $6,000,000 each fiscal year is included in the base and the transfer continues each fiscal year until the judges retirement plan reaches 100 percent funding as determined by an actuarial valuation prepared under Minnesota Statutes, section 356.214. new text end

Sec. 8.

new text begin MILITARY AFFAIRS new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 248,000 new text end

new text begin Security Improvement; General Support. For payroll costs and contracted costs of training and testing to provide security at state-owned Minnesota National Guard facilities. new text end

Sec. 9.

new text begin VETERANS AFFAIRS new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 700,000 new text end

new text begin Subd. 2. new text end

new text begin Cottages of Anoka new text end

new text begin -0- new text end new text begin 100,000 new text end

new text begin $100,000 is to support nonprofit organizations in providing rent subsidies for housing for veterans and their families at the Cottages of Anoka. new text end

new text begin Subd. 3. new text end

new text begin State Soldiers Assistance Grant new text end

new text begin -0- new text end new text begin 200,000 new text end

new text begin $200,000 is for the state soldiers assistance fund, for housing assistance and health assistance to veterans. new text end

new text begin Subd. 4. new text end

new text begin Mental Health Study new text end

new text begin -0- new text end new text begin 150,000 new text end

new text begin For the study and report in section 62. This is a onetime appropriation. new text end

new text begin Subd. 5. new text end

new text begin Disabled Veterans Interim Housing Study new text end

new text begin -0- new text end new text begin 250,000 new text end

new text begin For the study and report in section 63. This is a onetime appropriation. new text end

Sec. 10.

new text begin PUBLIC SAFETY new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 88,000 new text end

new text begin $88,000 is for a grant to the Arrowhead Regional Development Commission to conduct an assessment of law enforcement needs for detention facilities in northeast Minnesota. This is a onetime appropriation. new text end

Sec. 11.

Minnesota Statutes 2014, section 3.3005, subdivision 3, is amended to read:

Subd. 3.

State match.

If a request to spend federal money is included in the governor's budget or spending the money is authorized by law but the amount of federal money deleted text begin receiveddeleted text end new text begin that has been awarded andnew text end requires a state match greater than deleted text begin thatdeleted text end new text begin the amount that wasnew text end included in the budget request or authorized by law, the deleted text begin amountdeleted text end new text begin federal funds that have been awardednew text end that deleted text begin requiresdeleted text end new text begin requirenew text end an additional state match may be allotted for expenditure after the requirements of subdivision 5 or 6 are met.

Sec. 12.

Minnesota Statutes 2014, section 3.3005, subdivision 3b, is amended to read:

Subd. 3b.

Increase in amount.

If a request to spend federal money is included in a governor's budget request and approved according to subdivision 2 or 5 and the amount of money deleted text begin availabledeleted text end new text begin awardednew text end increases after the request is made and authorized, the additional amount may be allotted for expenditure after a revised request is submitted according to subdivision 2, or the requirements of subdivision new text begin 4, new text end 5new text begin ,new text end or 6 are met.

Sec. 13.

Minnesota Statutes 2014, section 3.3005, subdivision 4, is amended to read:

Subd. 4.

Interim procedures; urgencies.

If federal money deleted text begin becomes available deleted text end new text begin is awardednew text end to the state for expenditure after the deadline in subdivision 2 or while the legislature is not in session, and the availability of money from that source or for that purpose or in that fiscal year could not reasonably have been anticipated and included in the governor's budget request, and an urgency requires that all or part of the money be deleted text begin allotteddeleted text end new text begin encumbered or expendednew text end before the legislature reconvenes or prior to the end of the 20-day period specified in subdivision 2, it may be allotted to a state agency after the requirements of subdivision 5 are met.

Sec. 14.

Minnesota Statutes 2014, section 3.3005, subdivision 5, is amended to read:

Subd. 5.

Legislative Advisory Commission review.

Federal money that new text begin is awarded and new text end becomes available under subdivision 3, 3a, 3b, or 4 may be allotted after the commissioner of management and budget has submitted the request to the members of the Legislative Advisory Commission for their review and recommendation for further review. If a recommendation is not made within ten days, no further review by the Legislative Advisory Commission is required, and the commissioner shall approve or disapprove the request. If a recommendation by any member is for further review the governor shall submit the request to the Legislative Advisory Commission for its review and recommendation. Failure or refusal of the commission to make a recommendation promptly is a negative recommendation.

Sec. 15.

Minnesota Statutes 2014, section 3.3005, subdivision 6, is amended to read:

Subd. 6.

Interim procedures; nonurgencies.

If federal money becomes available to the state for expenditure after the deadline in subdivision 2 or while the legislature is not in session, and subdivision 4 does not apply, a request to expend deleted text begin thedeleted text end new text begin thatnew text end federal money may be submitted by the commissioner of management and budget to members of the Legislative Advisory Commission for their review and recommendation. This request must be submitted bynew text begin the later ofnew text end October 1 deleted text begin of any yeardeleted text end new text begin or 100 days before the start of the next legislative sessionnew text end . If any member of the commission makes a negative recommendation or a recommendation for further review on a request deleted text begin by October 20 of the same yeardeleted text end new text begin during the 20-day period beginning the day the commissioner submits the requestnew text end , the commissioner shall not approve expenditure of that federal money. deleted text begin If a request to expend federal money submitted under this subdivision receives a negative recommendation or a recommendation for further review, the request may be submitted again under subdivision 2.deleted text end If the members of the commission make a positive recommendation or no recommendation, the commissioner deleted text begin shalldeleted text end new text begin maynew text end approve deleted text begin or disapprovedeleted text end the request and the federal money may be allotted for expenditurenew text begin . The commissioner may submit the request again under subdivision 2 if the request receives a negative recommendation or a recommendation for further review under this subdivisionnew text end .

Sec. 16.

Minnesota Statutes 2014, section 3.3005, is amended by adding a subdivision to read:

new text begin Subd. 6a. new text end

new text begin Withdrawal of commission recommendation. new text end

new text begin A member of the commission, with written notice to the commissioner, may withdraw a negative recommendation or a recommendation for further review within 20 days of making the recommendation. If all negative recommendations and all recommendations for further review have been withdrawn, the commissioner may approve the expenditure of the federal money. new text end

Sec. 17.

Minnesota Statutes 2014, section 3.3005, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Withdrawal of request. new text end

new text begin The commissioner of management and budget may, with written notice, withdraw any request to spend federal money under this section. The commissioner of an agency requesting to expend federal money under this section may, with written notice, withdraw any request to spend federal money under this section that was submitted by the commissioner's agency. new text end

Sec. 18.

Minnesota Statutes 2014, section 16A.103, is amended by adding a subdivision to read:

new text begin Subd. 1h. new text end

new text begin Revenue uncertainty information. new text end

new text begin The commissioner shall report to the legislature within 14 days of a forecast under subdivision 1 on uncertainty in Minnesota's general fund revenue projections. The report shall present information on: (1) the estimated range of forecast error for revenues; and (2) the data and methods used to construct those measurements. new text end

Sec. 19.

Minnesota Statutes 2015 Supplement, section 16A.152, subdivision 2, is amended to read:

Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general fund revenues and expenditures, the commissioner of management and budget determines that there will be a positive unrestricted budgetary general fund balance at the close of the biennium, the commissioner of management and budget must allocate money to the following accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches $350,000,000;

(2) the budget reserve account established in subdivision 1a until that account reaches deleted text begin $810,992,000deleted text end new text begin $1,596,522,000new text end ;

(3) the amount necessary to increase the aid payment schedule for school district aids and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest tenth of a percent without exceeding the amount available and with any remaining funds deposited in the budget reserve;new text begin andnew text end

(4) the amount necessary to restore all or a portion of the net aid reductions under section 127A.441 and to reduce the property tax revenue recognition shift under section 123B.75, subdivision 5, by the same amountdeleted text begin ;deleted text end new text begin .new text end

deleted text begin (5) the closed landfill investment fund established in section 115B.421 until $63,215,000 has been transferred into the account. This clause expires after the entire amount of the transfer has been made; and deleted text end

deleted text begin (6) the metropolitan landfill contingency action trust account established in section 473.845 until $8,100,000 has been transferred into the account. This clause expires after the entire amount of the transfer has been made. deleted text end

(b) The amounts necessary to meet the requirements of this section are appropriated from the general fund within two weeks after the forecast is released or, in the case of transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. The commissioner of education shall increase the aid payment percentage and reduce the property tax shift percentage by these amounts and apply those reductions to the current fiscal year and thereafter.

Sec. 20.

Minnesota Statutes 2015 Supplement, section 16C.073, subdivision 2, is amended to read:

Subd. 2.

Purchases.

(a) Whenever practicable, a public entity shall:

(1) purchase uncoated copy paper, office paper, and printing paper;

(2) purchase recycled content copy paper with at least 30 percent postconsumer material by weight and purchase printing and office paper with at least ten percent postconsumer material by weight;

(3) purchase copy, office, and printing paper which has not been dyed with colors, excluding pastel colors;

(4) purchase recycled content copy, office, and printing paper that is manufactured using little or no chlorine bleach or chlorine derivatives;

(5) use reusable binding materials or staples and bind documents by methods that do not use glue;

(6) use soy-based inks;

new text begin (7) purchase printer or duplication cartridges that: new text end

new text begin (i) have ten percent postconsumer material; or new text end

new text begin (ii) are purchased as remanufactured; or new text end

new text begin (iii) are backed by a vendor-offered program that will take back the printer cartridges after their useful life, ensure that the cartridge is recycled, and comply with the definition of recycling in section 115A.03, subdivision 25b; new text end

deleted text begin (7)deleted text end new text begin (8)new text end produce reports, publications, and periodicals that are readily recyclable; and

deleted text begin (8)deleted text end new text begin (9)new text end purchase paper which has been made on a paper machine located in Minnesota.

(b) Paragraph (a), clause (1), does not apply to coated paper that is made with at least 50 percent postconsumer material.

(c) A public entity shall print documents on both sides of the paper where commonly accepted publishing practices allow.

Sec. 21.

Minnesota Statutes 2014, section 16E.0466, is amended to read:

16E.0466 STATE AGENCY TECHNOLOGY PROJECTS.

new text begin (a) new text end Every state agency with an information or telecommunications project must consult with the Office of MN.IT Services to determine the information technology cost of the project. Upon agreement between the commissioner of a particular agency and the chief information officer, the agency must transfer the information technology cost portion of the project to the Office of MN.IT Services. Service level agreements must document all project-related transfers under this section. Those agencies specified in section 16E.016, paragraph (d), are exempt from the requirements of this section.

new text begin (b) Notwithstanding section 16A.28, subdivision 3, any unexpended operating balance appropriated to a state agency may be transferred to the information and telecommunications technology systems and services account for the information technology cost of a specific project, subject to the review of the Legislative Advisory Commission, under section 16E.21, subdivision 3. new text end

Sec. 22.

Minnesota Statutes 2014, section 16E.21, subdivision 2, is amended to read:

Subd. 2.

Charges.

Upon agreement of the participating agency, the Office of MN.IT Services may collect a charge new text begin or receive a fund transfer under section 16E.0466 new text end for purchases of information and telecommunications technology systems and services by state agencies and other governmental entities through state contracts for purposes described in subdivision 1. Charges collected under this section must be credited to the information and telecommunications technology systems and services account.

Sec. 23.

Minnesota Statutes 2014, section 16E.21, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Legislative Advisory Commission review. new text end

new text begin (a) No funds may be transferred to the information and telecommunications technology systems and services account under subdivision 2 or section 16E.0466 until the commissioner of management and budget has submitted the proposed transfer to the members of the Legislative Advisory Commission for review and recommendation. If the commission makes a positive recommendation or no recommendation, or if the commission has not reviewed the request within 20 days after the date the request to transfer funds was submitted, the commissioner of management and budget may approve the request to transfer the funds. If the commission recommends further review of a request to transfer funds, the commissioner shall provide additional information to the commission. If the commission makes a negative recommendation on the request within ten days of receiving further information, the commissioner shall not approve the fund transfer. If the commission makes a positive recommendation or no recommendation within ten days of receiving further information, the commissioner may approve the fund transfer. new text end

new text begin (b) A recommendation of the commission must be made at a meeting of the commission unless a written recommendation is signed by all members entitled to vote on the item as specified in section 3.30, subdivision 2. A recommendation of the commission must be made by a majority of the commission. new text end

Sec. 24.

Minnesota Statutes 2014, section 16E.21, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Lapse. new text end

new text begin Any portion of any receipt credited to the information and telecommunications technology systems and services account from a fund transfer under subdivision 2 that remains unexpended and unencumbered at the close of the fiscal year four years after the funds were received in the account shall lapse to the fund from which the receipt was transferred. new text end

Sec. 25.

Minnesota Statutes 2014, section 16E.21, is amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin The chief information officer shall report by September 15 of each odd-numbered year to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over the Office of MN.IT Services regarding the receipts credited to the account. The report must include a description of projects funded through the information and telecommunications technology systems and services account and each project's current status. new text end

Sec. 26.

Minnesota Statutes 2014, section 116J.8737, subdivision 2, is amended to read:

Subd. 2.

Certification of qualified small businesses.

(a) Businesses may apply to the commissioner for certification as a qualified small business or qualified greater Minnesota small business for a calendar year. The application must be in the form and be made under the procedures specified by the commissioner, accompanied by an application fee of $150. Application fees are deposited in the small business investment tax credit administration account in the special revenue fund. The application for certification for 2010 must be made available on the department's Web site by August 1, 2010. Applications for subsequent years' certification must be made available on the department's Web site by November 1 of the preceding year.

(b) Within 30 days of receiving an application for certification under this subdivision, the commissioner must either certify the business as satisfying the conditions required of a qualified small business or qualified greater Minnesota small business, request additional information from the business, or reject the application for certification. If the commissioner requests additional information from the business, the commissioner must either certify the business or reject the application within 30 days of receiving the additional information. If the commissioner neither certifies the business nor rejects the application within 30 days of receiving the original application or within 30 days of receiving the additional information requested, whichever is later, then the application is deemed rejected, and the commissioner must refund the $150 application fee. A business that applies for certification and is rejected may reapply.

(c) To receive certification as a qualified small business, a business must satisfy all of the following conditions:

(1) the business has its headquarters in Minnesota;

(2) at leastnew text begin : (i)new text end 51 percent of the business's employees are employed in Minnesotadeleted text begin , anddeleted text end new text begin ; (ii)new text end 51 percent of the business's total payroll is paid or incurred in the statenew text begin ; and (iii) 51 percent of the total value of all contractual agreements to which the business is a party in connection with its primary business activity is for services performed under contract in Minnesota, unless the business obtains a waiver under paragraph (i)new text end ;

(3) the business is engaged in, or is committed to engage in, innovation in Minnesota in one of the following as its primary business activity:

(i) using proprietary technology to add value to a product, process, or service in a qualified high-technology field;

(ii) researching or developing a proprietary product, process, or service in a qualified high-technology field;

(iii) researching or developing a proprietary product, process, or service in the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation; or

(iv) researching, developing, or producing a new proprietary technology for use in the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;

(4) other than the activities specifically listed in clause (3), the business is not engaged in real estate development, insurance, banking, lending, lobbying, political consulting, information technology consulting, wholesale or retail trade, leisure, hospitality, transportation, construction, ethanol production from corn, or professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants;

(5) the business has fewer than 25 employees;

(6) the business must pay its employees annual wages of at least 175 percent of the federal poverty guideline for the year for a family of four and must pay its interns annual wages of at least 175 percent of the federal minimum wage used for federally covered employers, except that this requirement must be reduced proportionately for employees and interns who work less than full-time, and does not apply to an executive, officer, or member of the board of the business, or to any employee who owns, controls, or holds power to vote more than 20 percent of the outstanding securities of the business;

(7) the business has (i) not been in operation for more than ten years, or (ii) not been in operation for more than 20 years if the business is engaged in the research, development, or production of medical devices or pharmaceuticals for which United States Food and Drug Administration approval is required for use in the treatment or diagnosis of a disease or condition;

(8) the business has not previously received private equity investments of more than $4,000,000;

(9) the business is not an entity disqualified under section 80A.50, paragraph (b), clause (3); and

(10) the business has not issued securities that are traded on a public exchange.

(d) In applying the limit under paragraph (c), clause (5), the employees in all members of the unitary business, as defined in section 290.17, subdivision 4, must be included.

(e) In order for a qualified investment in a business to be eligible for tax credits:

(1) the business must have applied for and received certification for the calendar year in which the investment was made prior to the date on which the qualified investment was made;

(2) the business must not have issued securities that are traded on a public exchange;

(3) the business must not issue securities that are traded on a public exchange within 180 days after the date on which the qualified investment was made; and

(4) the business must not have a liquidation event within 180 days after the date on which the qualified investment was made.

(f) The commissioner must maintain a list of qualified small businesses and qualified greater Minnesota businesses certified under this subdivision for the calendar year and make the list accessible to the public on the department's Web site.

(g) For purposes of this subdivision, the following terms have the meanings given:

(1) "qualified high-technology field" includes aerospace, agricultural processing, renewable energy, energy efficiency and conservation, environmental engineering, food technology, cellulosic ethanol, information technology, materials science technology, nanotechnology, telecommunications, biotechnology, medical device products, pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar fields;

(2) "proprietary technology" means the technical innovations that are unique and legally owned or licensed by a business and includes, without limitation, those innovations that are patented, patent pending, a subject of trade secrets, or copyrighted; and

(3) "greater Minnesota" means the area of Minnesota located outside of the metropolitan area as defined in section 473.121, subdivision 2.

(h) To receive certification as a qualified greater Minnesota business, a business must satisfy all of the requirements of paragraph (c) and must satisfy the following conditions:

(1) the business has its headquarters in greater Minnesota; and

(2) at leastnew text begin : (i)new text end 51 percent of the business's employees are employed in greater Minnesotadeleted text begin , anddeleted text end new text begin ; (ii)new text end 51 percent of the business's total payroll is paid or incurred in greater Minnesotadeleted text begin .deleted text end new text begin ; and (iii) 51 percent of the total value of all contractual agreements to which the business is a party in connection with its primary business activity is for services performed under contract in greater Minnesota, unless the business obtains a waiver under paragraph (i).new text end

new text begin (i) The commissioner must exempt a business from the requirement under paragraph (c), clause (2), item (iii), if the business certifies to the commissioner that the services required under a contract in connection with the primary business activity cannot be performed in Minnesota if the business otherwise qualifies as a qualified small business, or in greater Minnesota if the business otherwise qualifies as a qualified greater Minnesota business. The business must submit the certification required under this paragraph every six months from the month the exemption was granted. The exemption allowed under this paragraph must be submitted in a form and manner prescribed by the commissioner. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December 31, 2015. new text end

Sec. 27.

Minnesota Statutes 2014, section 116J.8737, subdivision 5, is amended to read:

Subd. 5.

Credit allowed.

(a)(1) A qualified investor or qualified fund is eligible for a credit equal to 25 percent of the qualified investment in a qualified small business. Investments made by a pass-through entity qualify for a credit only if the entity is a qualified fund. The commissioner must not allocate more than $15,000,000 in credits to qualified investors or qualified funds for taxable years beginning after December 31, 2013, and before January 1, 2017new text begin , and must not allocate more than $10,000,000 in credits to qualified investors or qualified funds for taxable years beginning after December 31, 2016, and before January 1, 2018new text end ; and

(2) for taxable years beginning after December 31, 2014, and before January 1, deleted text begin 2017deleted text end new text begin 2018new text end , deleted text begin $7,500,000deleted text end new text begin 50 percentnew text end must be allocated to credits for qualifying investments in qualified greater Minnesota businesses and minority- or women-owned qualified small businesses in Minnesota. Any portion of a taxable year's credits that is reserved for qualifying investments in greater Minnesota businesses and minority- or women-owned qualified small businesses in Minnesota that is not allocated by September 30 of the taxable year is available for allocation to other credit applications beginning on October 1. Any portion of a taxable year's credits that is not allocated by the commissioner does not cancel and may be carried forward to subsequent taxable years until all credits have been allocated.

(b) The commissioner may not allocate more than a total maximum amount in credits for a taxable year to a qualified investor for the investor's cumulative qualified investments as an individual qualified investor and as an investor in a qualified fund; for married couples filing joint returns the maximum is $250,000, and for all other filers the maximum is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits over all taxable years for qualified investments in any one qualified small business.

(c) The commissioner may not allocate a credit to a qualified investor either as an individual qualified investor or as an investor in a qualified fund if, at the time the investment is proposed:

(1) the investor is an officer or principal of the qualified small business; or

(2) the investor, either individually or in combination with one or more members of the investor's family, owns, controls, or holds the power to vote 20 percent or more of the outstanding securities of the qualified small business.

A member of the family of an individual disqualified by this paragraph is not eligible for a credit under this section. For a married couple filing a joint return, the limitations in this paragraph apply collectively to the investor and spouse. For purposes of determining the ownership interest of an investor under this paragraph, the rules under section 267(c) and 267(e) of the Internal Revenue Code apply.

(d) Applications for tax credits for 2010 must be made available on the department's Web site by September 1, 2010, and the department must begin accepting applications by September 1, 2010. Applications for subsequent years must be made available by November 1 of the preceding year.

(e) Qualified investors and qualified funds must apply to the commissioner for tax credits. Tax credits must be allocated to qualified investors or qualified funds in the order that the tax credit request applications are filed with the department. The commissioner must approve or reject tax credit request applications within 15 days of receiving the application. The investment specified in the application must be made within 60 days of the allocation of the credits. If the investment is not made within 60 days, the credit allocation is canceled and available for reallocation. A qualified investor or qualified fund that fails to invest as specified in the application, within 60 days of allocation of the credits, must notify the commissioner of the failure to invest within five business days of the expiration of the 60-day investment period.

(f) All tax credit request applications filed with the department on the same day must be treated as having been filed contemporaneously. If two or more qualified investors or qualified funds file tax credit request applications on the same day, and the aggregate amount of credit allocation claims exceeds the aggregate limit of credits under this section or the lesser amount of credits that remain unallocated on that day, then the credits must be allocated among the qualified investors or qualified funds who filed on that day on a pro rata basis with respect to the amounts claimed. The pro rata allocation for any one qualified investor or qualified fund is the product obtained by multiplying a fraction, the numerator of which is the amount of the credit allocation claim filed on behalf of a qualified investor and the denominator of which is the total of all credit allocation claims filed on behalf of all applicants on that day, by the amount of credits that remain unallocated on that day for the taxable year.

(g) A qualified investor or qualified fund, or a qualified small business acting on their behalf, must notify the commissioner when an investment for which credits were allocated has been made, and the taxable year in which the investment was made. A qualified fund must also provide the commissioner with a statement indicating the amount invested by each investor in the qualified fund based on each investor's share of the assets of the qualified fund at the time of the qualified investment. After receiving notification that the investment was made, the commissioner must issue credit certificates for the taxable year in which the investment was made to the qualified investor or, for an investment made by a qualified fund, to each qualified investor who is an investor in the fund. The certificate must state that the credit is subject to revocation if the qualified investor or qualified fund does not hold the investment in the qualified small business for at least three years, consisting of the calendar year in which the investment was made and the two following years. The three-year holding period does not apply if:

(1) the investment by the qualified investor or qualified fund becomes worthless before the end of the three-year period;

(2) 80 percent or more of the assets of the qualified small business is sold before the end of the three-year period;

(3) the qualified small business is sold before the end of the three-year period;

(4) the qualified small business's common stock begins trading on a public exchange before the end of the three-year period; or

(5) the qualified investor dies before the end of the three-year period.

(h) The commissioner must notify the commissioner of revenue of credit certificates issued under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December 31, 2016. new text end

Sec. 28.

Minnesota Statutes 2014, section 116J.8737, subdivision 12, is amended to read:

Subd. 12.

Sunset.

This section expires for taxable years beginning after December 31, deleted text begin 2016deleted text end new text begin 2017new text end , except that reporting requirements under subdivision 6 and revocation of credits under subdivision 7 remain in effect through deleted text begin 2018deleted text end new text begin 2019new text end for qualified investors and qualified funds, and through deleted text begin 2020deleted text end new text begin 2021new text end for qualified small businesses, reporting requirements under subdivision 9 remain in effect through deleted text begin 2021deleted text end new text begin 2022new text end , and the appropriation in subdivision 11 remains in effect through deleted text begin 2020deleted text end new text begin 2021new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 29.

Minnesota Statutes 2014, section 154.001, subdivision 2, is amended to read:

Subd. 2.

Board of Barber Examiners.

(a) A Board of Barber Examiners is established to consist of deleted text begin threedeleted text end new text begin fournew text end barber members and one public member, as defined in section 214.02, appointed by the governor.

(b) The barber members shall be persons who have practiced as registered barbers in this state for at least five years immediately prior to their appointment; shall be graduates from the 12th grade of a high school or have equivalent education, and shall have knowledge of the matters to be taught in registered barber schools, as set forth in section 154.07. One of the barber members shall be a member of, or recommended by, a union of journeymen barbers that has existed at least two years, and one barber member shall be a member of, or recommended by, a professional organization of barbers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 30.

Minnesota Statutes 2014, section 154.002, is amended to read:

154.002 OFFICERS; COMPENSATION; FEES; EXPENSES.

The Board of Barber Examiners shall annually elect a chair and secretary. It shall adopt and use a common seal for the authentication of its orders and records. The board shall appoint an executive secretary or enter into an interagency agreement to procure the services of an executive secretary. The executive secretary shall not be a member of the board and shall be in the unclassified civil service. The position of executive secretary may be a part-time position.

The executive secretary shall keep a record of all proceedings of the board. The expenses of administering this chapter shall be paid from the appropriations made to the Board of Barber Examiners.

Each member of the board shall take the oath provided by law for public officers.

A majority of the board, in meeting assembled, may perform and exercise all the duties and powers devolving upon the board.

The members of the board shall receive compensationnew text begin , as provided in section 214.09, new text end for each day spent on board activities, but not to exceed 20 days in any calendar month nor 100 days in any calendar year.

The board shall have authority to employ such inspectors, clerks, deputies, and other assistants as it may deem necessary to carry out the provisions of this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 31.

Minnesota Statutes 2015 Supplement, section 154.003, is amended to read:

154.003 FEES.

(a) The fees collected, as required in this chapter, chapter 214, and the rules of the board, shall be paid to the board. The board shall deposit the fees in the general fund in the state treasury.

(b) The board shall charge the following fees:

(1) examination and certificate, registered barber, $85;

(2) retake of written examination, deleted text begin registered barber,deleted text end $10;

deleted text begin (3) examination and certificate, apprentice, $80; deleted text end

deleted text begin (4) retake of written examination, apprentice, $10; deleted text end

deleted text begin (5)deleted text end new text begin (3)new text end examinationnew text begin and certificatenew text end , instructor, $180;

deleted text begin (6)deleted text end new text begin (4)new text end certificate, instructor, $65;

deleted text begin (7)deleted text end new text begin (5)new text end temporary teacher deleted text begin or apprenticedeleted text end permit, $80;

deleted text begin (8)deleted text end new text begin (6)new text end temporary registered barber, military, $85;

deleted text begin (9)deleted text end new text begin (7)new text end temporary barber instructor, military, $180;

deleted text begin (10) temporary apprentice barber, military, $80; deleted text end

deleted text begin (11)deleted text end new text begin (8)new text end renewal of registration, registered barber, $80;

deleted text begin (12) renewal of registration, apprentice, $70; deleted text end

deleted text begin (13)deleted text end new text begin (9)new text end renewal of registration, instructor, $80;

deleted text begin (14)deleted text end new text begin (10)new text end renewal of temporary teacher permit, $65;

deleted text begin (15)deleted text end new text begin (11)new text end student permit, $45;

deleted text begin (16)deleted text end new text begin (12)new text end renewal of student permit, $25;

deleted text begin (17)deleted text end new text begin (13)new text end initial shop registration, $85;

deleted text begin (18)deleted text end new text begin (14)new text end initial school registration, $1,030;

deleted text begin (19)deleted text end new text begin (15)new text end renewal shop registration, $85;

deleted text begin (20)deleted text end new text begin (16)new text end renewal school registration, $280;

deleted text begin (21)deleted text end new text begin (17)new text end restoration of registered barber registration, $95;

deleted text begin (22) restoration of apprentice registration, $90; deleted text end

deleted text begin (23)deleted text end new text begin (18)new text end restoration of shop registration, $105;

deleted text begin (24)deleted text end new text begin (19)new text end change of ownership or location, $55;

deleted text begin (25)deleted text end new text begin (20)new text end duplicate registration, $40;

deleted text begin (26)deleted text end new text begin (21)new text end home study course, $75;

deleted text begin (27)deleted text end new text begin (22)new text end letter of registration verification, $25; and

deleted text begin (28)deleted text end new text begin (23)new text end reinspection, $100.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 32.

Minnesota Statutes 2014, section 154.01, is amended to read:

154.01 REGISTRATION MANDATORY.

new text begin (a) The registration of the practice of barbering serves the public health and safety of the people of the state of Minnesota by ensuring that individuals seeking to practice the profession of barbering are appropriately trained in the use of the chemicals, tools, and implements of barbering and demonstrate the skills necessary to conduct barber services in a safe, sanitary, and appropriate environment required for infection control. new text end

deleted text begin (a)deleted text end new text begin (b)new text end No person shall practice, offer to practice, or attempt to practice barbering without a current certificate of registration as a registered barber, issued pursuant to provisions of sections 154.001, 154.002, 154.003, 154.01 to deleted text begin 154.161deleted text end new text begin 154.162new text end , 154.19 to 154.21, and 154.24 to deleted text begin 154.26deleted text end new text begin 154.28 new text end by the Board of Barber Examiners.

deleted text begin (b) No person shall serve, offer to serve, or attempt to serve as an apprentice under a registered barber without a current certificate of registration as a registered apprentice or temporary apprentice permit issued pursuant to provisions of sections 154.001, 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 by the Board of Barber Examiners. The registered apprentice shall, prior to or immediately upon issuance of the apprentice's certificate of registration, and immediately after changing employment, advise the board of the name, address, and certificate number of the registered barber under whom the registered apprentice is working. deleted text end

new text begin (c) A registered barber must only provide barbering services in a registered barber shop or barber school, unless prior authorization is given by the board. new text end

deleted text begin (c)deleted text end new text begin (d)new text end No person shall operate a barber shop unless it is at all times under the direct supervision and management of a registered barber and the owner or operator of the barber shop possesses a current shop registration card, issuednew text begin to the barber shop establishment address,new text end under sections 154.001, 154.002, 154.003, 154.01 to deleted text begin 154.161deleted text end new text begin 154.162new text end , 154.19 to 154.21, and 154.24 to deleted text begin 154.26deleted text end new text begin 154.28new text end by the Board of Barber Examiners.

deleted text begin (d)deleted text end new text begin (e)new text end No person shall serve, offer to serve, or attempt to serve as an instructor of barbering without a current certificate of registration as a registered instructor of barbering or a temporary permit as an instructor of barbering, as provided for the board by rule, issued under sections 154.001, 154.002, 154.003, 154.01 to deleted text begin 154.161deleted text end new text begin 154.162new text end , 154.19 to 154.21, and 154.24 to deleted text begin 154.26deleted text end new text begin 154.28new text end by the Board of Barber Examiners.new text begin Barber instruction must be provided in registered barber schools only.new text end

deleted text begin (e)deleted text end new text begin (f)new text end No person shall operate a barber school unless the owner or operator possesses a current certificate of registration as a barber school, issued under sections 154.001, 154.002, 154.003, 154.01 to deleted text begin 154.161deleted text end new text begin 154.162new text end , 154.19 to 154.21, and 154.24 to deleted text begin 154.26 deleted text end new text begin 154.28new text end by the Board of Barber Examiners.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 33.

Minnesota Statutes 2014, section 154.02, is amended to read:

154.02 deleted text begin WHAT CONSTITUTES BARBERINGdeleted text end new text begin DEFINITIONSnew text end .

new text begin Subdivision 1. new text end

new text begin What constitutes barbering. new text end

Any one or any combination of the following practices when done upon the headnew text begin , face,new text end and neck for cosmetic purposes and not for the treatment of disease or physical or mental ailments and when done for payment directly or indirectly or without payment for the public generally constitutes the practice of barbering within the meaning of sections 154.001, 154.002, 154.003, 154.01 to deleted text begin 154.161 deleted text end new text begin 154.162new text end , 154.19 to 154.21, and 154.24 to deleted text begin 154.26deleted text end new text begin 154.28new text end : to shave the face or neck, trim the beard, new text begin clean, condition, new text end cut deleted text begin or bobdeleted text end new text begin , color, shape, or straightennew text end the hair of any person of either sex for compensation or other reward received by the person performing such service or any other person; to give facial and scalp massage deleted text begin or treatmentsdeleted text end with oils, creams, lotions, or other preparations either by hand or mechanical appliances; to singe, shampoo the hair, or apply hair tonics; or to apply cosmetic preparations, antiseptics, powders, oils, clays, or lotions to hair, scalp, face, or neck.

new text begin Subd. 2. new text end

new text begin Barber school. new text end

new text begin A "barber school" is a place that holds a registration as a barber school in which barbering, as defined in subdivision 1, is practiced by registered student barbers under the direction of registered barber instructors for the purpose of learning and teaching barber skills. new text end

new text begin Subd. 3. new text end

new text begin Barber shop. new text end

new text begin A "barber shop" is a place other than a barber school that holds a registration as a barber shop under this chapter in which barbering, as defined in subdivision 1, is practiced. new text end

new text begin Subd. 4. new text end

new text begin Certificate of registration. new text end

new text begin A "certificate of registration" means the certificate issued to an individual, barber shop, or barber school that is in compliance with the requirements of sections 154.001, 154.002, 154.003, 154.01 to 154.162, 154.19 to 154.21, and 154.24 to 154.28. new text end

new text begin Subd. 5. new text end

new text begin Designated registered barber. new text end

new text begin The "designated registered barber" is a registered barber designated as the manager of a barber shop. new text end

new text begin Subd. 6. new text end

new text begin Registered barber. new text end

new text begin A "registered barber" is an individual who, for compensation, performs the personal services as defined in subdivision 1, in compliance with this chapter. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 34.

Minnesota Statutes 2014, section 154.04, is amended to read:

154.04 PERSONS EXEMPT FROM REGISTRATION.

The following persons are exempt from the provisions of sections 154.001, 154.002, 154.003, 154.01 to deleted text begin 154.161deleted text end new text begin 154.162new text end , 154.19 to 154.21, and 154.24 to deleted text begin 154.26deleted text end new text begin 154.28new text end while in the proper discharge of their professional duties:

(1) persons authorized by the law of this state to practice medicine, surgery, osteopathy, and chiropractic;

(2) commissioned medical or surgical officers of the United States armed services;

(3) registered nurses, licensed practical nurses, and nursing aides performing services under the direction and supervision of a new text begin licensed physician or licensed new text end registered nurse, provided, however, that no additional compensation shall be paid for such service and patients who are so attended shall not be charged for barbering;

(4) new text begin licensed new text end cosmetologists, new text begin when providing cosmetology services as defined in section 155A.23, subdivision 3, new text end provided, however, that cosmetologists shall not hold themselves out as barbers ordeleted text begin , except in the case of nail technicians,deleted text end practice their occupation in a barber shop; and

(5) persons who perform barbering services for charitable purposes in nursing homes, shelters, missions, new text begin individual homes, new text end or other similar facilities, provided, however, that no direct or indirect compensation is received for the services, and that persons who receive barbering services are not charged for the services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 35.

Minnesota Statutes 2014, section 154.05, is amended to read:

154.05 WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A REGISTERED BARBER.

new text begin (a) new text end A person is qualified to receive a certificate of registration as a registered barber new text begin if the personnew text end :

(1) deleted text begin who is qualified under the provisions of section 154.06deleted text end new text begin has successfully completed ten grades of educationnew text end ;

deleted text begin (2) who has practiced as a registered apprentice for a period of 12 months under the immediate personal supervision of a registered barber; and deleted text end new text begin (2) has successfully completed 1,500 hours of study in a board-approved barber school; and new text end

deleted text begin (3) who has passed an examination conducted by the board to determine fitness to practice barbering deleted text end

new text begin (3) has passed an examination conducted by the board to determine fitness to practice barberingnew text end .

deleted text begin An apprenticedeleted text end new text begin (b) A first-timenew text end applicant for a certificate of registration to practice as a registered barber who fails to pass the comprehensive examination conducted by the board and who fails to pass a onetime retake of the written examination, shall deleted text begin continue to practice as an apprentice fordeleted text end new text begin completenew text end an additional deleted text begin 300deleted text end new text begin 500new text end hours new text begin of barber education new text end before being eligible to retake the comprehensive examination as many times as necessary to pass.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 36.

Minnesota Statutes 2014, section 154.065, subdivision 2, is amended to read:

Subd. 2.

Qualifications.

A person is qualified to receive a certificate of registration as an instructor of barbering who:

(1) is a graduate of an approved high school, or its equivalent, as determined by examination by the Department of Education;

(2) has successfully completed vocational instructor training from a board-approved program or accredited college or university program that includes the following courses or their equivalents as determined by the board:

(i) introduction to career and technical education training;

(ii) philosophy and practice of career and technical education;

(iii) course development for career and technical education;

(iv) instructional methods for career and technical education; and

(v) human relations;

(3) is currently a registered barber and has at least three years experience as a registered barber in this state, or its equivalent new text begin in another state or jurisdiction new text end as determined by the board; and

(4) has passed an examination conducted by the board to determine fitness to instruct in barbering.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 37.

Minnesota Statutes 2014, section 154.065, subdivision 4, is amended to read:

Subd. 4.

Examinations.

Examinations under this section shall be held not to exceed twice a year at times and at a place or places to be determined by the board. In case of an emergency, there being no registered instructor of barbering available, a temporary certificate as an instructor of barberingdeleted text begin , valid only until the results of the next examination are released,deleted text end may be issued upon such terms and conditions as the board may prescribe.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 38.

Minnesota Statutes 2014, section 154.07, is amended to read:

154.07 BARBER SCHOOLS; REQUIREMENTS.

Subdivision 1.

Admission requirements; course of instruction.

No barber school shall be approved by the board unless it requires, as a prerequisite to admission, ten grades of an approved school or its equivalent, as determined by new text begin educational transcript, high school diploma, high school equivalency certificate, or new text end an examination conducted by the commissioner of education, which shall issue a certificate that the student has passed the required examination, and unless it requires, as a prerequisite to graduation, a course of instruction of at least 1,500 hoursdeleted text begin ,deleted text end of not more than deleted text begin eightdeleted text end new text begin tennew text end hours new text begin of schooling new text end in any one working day. The course of instruction must include the following subjects: scientific fundamentals for barbering; hygiene; practical study of the hair, skin, muscles, and nerves; structure of the head, face, and neck; elementary chemistry relating to new text begin sanitation; disinfection; new text end sterilization and antiseptics; diseases of the skin, hair, and glands; massaging and manipulating the muscles of the face and neck; haircutting; shaving; trimming the beard; bleaching, tinting and dyeing the hair; and the chemical waving and straightening of hair.

Subd. 3.

Costs.

It is permissible for barber schools to make a reasonable charge for materials used and services rendered by students for work done in the schools by students.

Subd. 3a.

Number of instructors.

There must be one registered instructor of barbering for every deleted text begin 17deleted text end new text begin 20new text end students deleted text begin or minor fraction in excess of 17deleted text end new text begin in attendance at the same timenew text end . Instruction must not be performed by persons not possessing a certificate of registration as an instructor of barbering or a temporary permit as an instructor of barbering.

Subd. 4.

Building requirements.

Each barber school must be conducted and operated in one building, or in connecting buildings, and a barber school must not have any department or branch in a building completely separated or removed from the remainder of the barber school.

Subd. 5.

Owner's requirements.

Any person may own deleted text begin and operatedeleted text end a barber school deleted text begin if the person has had six years' continuous experience as a barber,deleted text end provided the person first secures from the board an annual certificate of registration as a barber school, keeps it prominently displayed, and before commencing business:

(1) files with the secretary of state a bond to the state approved by the attorney general in the sum of $25,000, conditioned upon the faithful compliance of the barber school with sections 154.001, 154.002, 154.003, 154.01 to deleted text begin 154.161deleted text end new text begin 154.162new text end , 154.19 to 154.21, and 154.24 to deleted text begin 154.26deleted text end new text begin 154.28new text end , and to pay all judgments that may be obtained against the school, or the owners thereof, on account of fraud, misrepresentation, or deceit practiced by them or their agents; and

(2) keeps prominently displayed on the exterior a substantial sign indicating that the establishment is a barber school.

Subd. 5a.

Student permits.

All barber schools upon receiving students shall immediately apply to the board for student permits upon forms for that purpose furnished by the board.

Subd. 5b.

Designated operator.

new text begin All barber schools shall be operated by a barber with no less than six years of continuous experience as a registered barber in this state or another state or jurisdiction as determined by the board. new text end When a person who owns a barber school does not meet the requirements of this section to operate a barber school, the owner shall notify the board in writing and under oath of the identity of the person designated to operate the barber school and shall notify the board of any change of operator by telephone within 24 hours of such change, exclusive of Saturdays, Sundays, and legal holidays, and shall notify the board in writing and under oath within 72 hours of such change.

Subd. 6.

Operation by technical college or state institution.

A public technical college or a state institution may operate a barber school provided it has in its employment a qualified instructor holding a current certificate of registration as a barber instructor and provided that it secures from the board an annual certificate of registration and does so in accordance with sections 154.001, 154.002, 154.003, 154.01 to deleted text begin 154.161deleted text end new text begin 154.162new text end , 154.19 to 154.21, and 154.24 to deleted text begin 154.26deleted text end new text begin 154.28new text end and the rules of the board for barber schools but without the requirement to file a performance bond with the secretary of state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 39.

Minnesota Statutes 2014, section 154.08, is amended to read:

154.08 APPLICATION; FEE.

Each applicant for an examination shall:

(1) make application to the Board of Barber Examiners on blank forms prepared and furnished by it, the application to contain proof under the applicant's oath of the particular qualifications and identity of the applicant;

(2) provide all documentation required in support of the application;

(3) pay to the board the required fee; and

(4) deleted text begin present a government-issued photo identification as proof of identitydeleted text end upon new text begin acceptance of the notarized new text end application deleted text begin anddeleted text end new text begin present a corresponding government-issued photo identificationnew text end when the applicant appears for examination.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 40.

Minnesota Statutes 2014, section 154.09, is amended to read:

154.09 EXAMINATIONS, CONDUCT AND SCOPE.

The board shall conduct examinations of applicants for certificates of registration to practice as new text begin registered new text end barbers deleted text begin and apprenticesdeleted text end not more than six times each year, at such time and place as the board may determine. Additional written examinations may be scheduled by the board and conducted by board staff as designated by the board. The proprietor of a barber school must file an affidavit with the board of hours completed by students applying to take the deleted text begin apprenticedeleted text end new text begin registered barbernew text end examination. Students must complete deleted text begin 1,500 hoursdeleted text end new text begin the full 1,500-hour curriculumnew text end in a barber school approved by the board new text begin within the past four years to be eligible for examination. Barber students who have completed barber school more than four years prior to application, that have not obtained a barber registration, license, or certificate in any jurisdiction must complete an additional 500 hours of barber school education to be eligible for the registered barber examination. Registered barbers that fail to renew their registration for four or more years are required to take the registered barber examination to reinstate the registrationnew text end .

The examination of applicants for certificates of registration as barbers deleted text begin and apprenticesdeleted text end shall include a practical demonstration and a written deleted text begin and oraldeleted text end test. The examination must cover the subjects deleted text begin usuallydeleted text end taught in barber schools registered with the boardnew text begin , including applicable state statute and rulenew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 41.

Minnesota Statutes 2014, section 154.10, subdivision 2, is amended to read:

Subd. 2.

Certificates of registration; fees.

When the provisions of this chapter have been complied with, the board shall issue a certificate of registration as a registered barber, deleted text begin as a registered apprentice,deleted text end as a registered instructor of barbering, or as a registered barber school, deleted text begin a temporary apprentice permit,deleted text end a temporary permit as an instructor of barbering, or a new text begin barber new text end shop registration card upon payment of the required fee. Certificates of registration, temporary permits, and shop registration cards are not transferable.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 42.

Minnesota Statutes 2014, section 154.11, subdivision 1, is amended to read:

Subdivision 1.

Examination of nonresidents.

new text begin (a) new text end A person who meets all of the requirements for barber registration in sections 154.001, 154.002, 154.003, 154.01 to deleted text begin 154.161deleted text end new text begin 154.162new text end , 154.19 to 154.21, and 154.24 to deleted text begin 154.26deleted text end new text begin 154.28new text end and either has a new text begin currently active new text end license, certificate of registration, or deleted text begin andeleted text end equivalent as a practicing barber or instructor of barberingnew text begin as verifiednew text end from another state ornew text begin , if presenting foreignnew text end country new text begin credentials as verified by a board-approved professional credential evaluation provider, new text end which in the discretion of the board has substantially the same requirements for registering barbers and instructors of barbering as required by sections 154.001, 154.002, 154.003, 154.01 to deleted text begin 154.161deleted text end new text begin 154.162new text end , 154.19 to 154.21, and 154.24 to deleted text begin 154.26 or can prove by sworn affidavits practice as a barber or instructor of barbering in another state or country for at least five years immediately prior to making application in this state,deleted text end new text begin 154.28new text end shall, upon payment of the required fee, be issued a certificate of registration without examination.

new text begin (b) Individuals without a current documented license, certificate of registration, or equivalent, as verified in paragraph (a), must have a minimum of 1,500 hours of barber education as verified by the barber school attended in the other state or if presenting foreign country education as verified by a board-approved professional credential evaluation provider, completed within the previous four years, which, in the discretion of the board, has substantially the same requirements as required in sections 154.001, 154.002, 154.003, 154.01 to 154.162, 154.19 to 154.21, and 154.24 to 154.28 will be eligible for examination. new text end

new text begin (c) Individuals unable to meet the requirements in paragraph (a) or (b) shall be subject to all the requirements of section 154.05. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 43.

Minnesota Statutes 2015 Supplement, section 154.11, subdivision 3, is amended to read:

Subd. 3.

Temporary military permits.

(a) In accordance with section 197.4552, the board shall issue a temporary:

deleted text begin (1) permit for apprentice barbers; deleted text end

deleted text begin (2)deleted text end new text begin (1)new text end certificate for registered barbers; and

deleted text begin (3)deleted text end new text begin (2)new text end certificate for registered barber instructors.

(b) Fees for temporary military permits and certificates of registration under this subdivision are listed under section 154.003.

(c) Permits or certificates of registration issued under this subdivision are valid for one year from the date of issuance, after which the individual must complete a full application as required by section 197.4552.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 44.

Minnesota Statutes 2014, section 154.14, is amended to read:

154.14 CERTIFICATES OF REGISTRATION AND TEMPORARY PERMITS TO BE DISPLAYED.

Every holder of a certificate of registration as a registered barber deleted text begin or registered apprentice or temporary apprentice permitdeleted text end shall display the certificate or permit, with a photograph of the certificate or permit holder that meets the same standards as required for a United States passport, in a conspicuous place adjacent to or near the chair where work is performed. Every holder of a certificate of registration as an instructor of barbering or a temporary permit as an instructor of barbering shall display the certificate or permit, with a photograph of the certificate or permit holder that meets the same standards as required for a United States passport, in a conspicuous place new text begin within the barber school that is new text end accessible to the public. Every holder of a certificate of registration as a barber school and of a new text begin barber new text end shop registration card shall display it in a conspicuous place new text begin within the establishment that is new text end accessible to the public.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 45.

Minnesota Statutes 2014, section 154.15, is amended to read:

154.15 CERTIFICATES OF REGISTRATION MUST BE RENEWED ANNUALLY.

Subdivision 1.

Annual renewal required.

All registered barbersdeleted text begin , registered apprentices,deleted text end and registered instructors of barbering who continue in active practice or service shall, on or before December 31 each year, renew their certificates of registration for the following year and pay the required fee. Every certificate of registration which has not been renewed during the month of December in any year shall expire on the 31st day of December in that year. All shop registration cards shall be renewed on or before June 30 of each year upon payment of the required fee. All certificates of registration as a barber school shall be renewed on or before December 31 of each year upon payment of the required fee.

Subd. 2.

Effect of failure to renew.

A registered barber deleted text begin or a registered apprentice deleted text end who has not renewed a certificate of registration may be reinstated within four years of such failure to renew without examination upon the payment of the required restoration fee for each year the certificate is lapsed. A registered instructor of barbering who has not renewed a certificate of registration may be reinstated within four years of such failure to renew without examination upon payment of the required restoration fee for each year the certificate is lapsed. All registered barbers deleted text begin and registered apprenticesdeleted text end who allow their certificates of registration to lapse for more than four years shall be required to reexamine before being issued a certificate of registration. All registered instructors of barbering who allow their certificates of registration to lapse for more than four years shall be required to reexamine before being issued a certificate of registration. A barber shop owner who has not renewed the barber shop certificate for more than one year may reinstate the barber shop registration upon payment of the restoration fee for each year the shop card was lapsed. If lapsed or unregistered status is discovered by the barber inspector during inspection, penalties under section 154.162 shall apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 46.

Minnesota Statutes 2015 Supplement, section 154.161, subdivision 4, is amended to read:

Subd. 4.

Registration actions.

(a) With respect to a person who is a holder of or applicant for registration or a shop registration card under sections 154.001, 154.002, 154.003, 154.01 to deleted text begin 154.161deleted text end new text begin 154.162new text end , 154.19 to 154.21, and 154.24 to deleted text begin 154.26deleted text end new text begin 154.28new text end , the board may by order deny, refuse to renew, suspend, temporarily suspend, or revoke the application, certificate of registration, or shop registration card, censure or reprimand the person, refuse to permit the person to sit for examination, or refuse to release the person's examination grades, if the board finds that such an order is in the public interest and that, based on a preponderance of the evidence presented, the person has:

(1) violated a statute, rule, or order that the board has adopted or issued or is empowered to enforce;

(2) engaged in conduct or acts that are fraudulent, deceptive, or dishonest, whether or not the conduct or acts relate to the practice of barbering, if the fraudulent, deceptive, or dishonest conduct or acts reflect adversely on the person's ability or fitness to engage in the practice of barbering;

(3) engaged in conduct or acts that constitute malpractice, are negligent, demonstrate incompetence, or are otherwise in violation of the standards in the rules of the board, where the conduct or acts relate to the practice of barbering;

(4) employed fraud or deception in obtaining a certificate of registration, shop registration card, renewal, or reinstatement, or in passing all or a portion of the examination;

(5) had a certificate of registration or shop registration card, right to examine, or other similar authority revoked in another jurisdiction;

(6) failed to meet any requirement for issuance or renewal of the person's certificate of registration or shop registration card;

(7) practiced as a barber while having an infectious or contagious disease;

(8) advertised by means of false or deceptive statements;

(9) demonstrated intoxication or indulgence in the use of drugs, including but not limited to narcotics as defined in section 152.01 or in United States Code, title 26, section 4731, barbiturates, amphetamines, benzedrine, dexedrine, or other sedatives, depressants, stimulants, or tranquilizers;

(10) demonstrated unprofessional conduct or practice;

(11) permitted an employee or other person under the person's supervision or control to practice as a registered barber, deleted text begin registered apprentice,deleted text end or registered instructor of barbering unless that person has (i) a current certificate of registration as a registered barber, deleted text begin registered apprentice,deleted text end or registered instructor of barbering, (ii) a temporary apprentice permit, or (iii) a temporary permit as an instructor of barbering;

(12) practices, offered to practice, or attempted to practice by misrepresentation;

(13) failed to display a certificate of registration as required by section 154.14;

(14) used any room or place of barbering that is also used for any other purpose, or used any room or place of barbering that violates the board's rules governing sanitation;

(15) in the case of a barberdeleted text begin , apprentice,deleted text end or other person working in or in charge of any barber shop, or any person in a barber school engaging in the practice of barbering, failed to use separate and clean towels for each customer or patron, or to discard and launder each towel after being used once;

(16) in the case of a barber or other person in charge of any barber shop or barber school, (i) failed to supply in a sanitary manner clean hot and cold water in quantities necessary to conduct the shop or barbering service for the school, (ii) failed to have water and sewer connections from the shop or barber school with municipal water and sewer systems where they are available for use, or (iii) failed or refused to maintain a receptacle for hot water of a capacity of at least five gallons;

(17) refused to permit the board to make an inspection permitted or required by sections 154.001, 154.002, 154.003, 154.01 to deleted text begin 154.161deleted text end new text begin 154.162new text end , 154.19 to 154.21, and 154.24 to deleted text begin 154.26deleted text end new text begin 154.28new text end , or failed to provide the board or the attorney general on behalf of the board with any documents or records they request;

(18) failed promptly to renew a certificate of registration or shop registration card when remaining in practice, pay the required fee, or issue a worthless check;

(19) deleted text begin failed to supervise a registered apprentice or temporary apprentice, ordeleted text end permitted the practice of barbering by a person not registered with the board or not holding a temporary permit;

(20) refused to serve a customer because of race, color, creed, religion, disability, national origin, or sex;

(21) failed to comply with a provision of sections 136A.82 to 136A.834, or a provision of another chapter that relates to barber schools; or

(22) with respect to temporary suspension orders, has committed an act, engaged in conduct, or committed practices that the board, or complaint committee if authorized by the board, has determined may result or may have resulted in an immediate threat to the public.

(b) In lieu of or in addition to any remedy under paragraph (a), the board may as a condition of continued registration, termination of suspension, reinstatement of registration, examination, or release of examination results, require that the person:

(1) submit to a quality review of the person's ability, skills, or quality of work, conducted in a manner and by a person or entity that the board determines; or

(2) complete to the board's satisfaction continuing education as the board requires.

(c) Service of an order under this subdivision is effective if the order is served personally on, or is served by certified mail to the most recent address provided to the board by the certificate holder, applicant, or counsel of record. The order must state the reason for the entry of the order.

(d) Except as provided in subdivision 5, paragraph (c), all hearings under this subdivision must be conducted in accordance with the Administrative Procedure Act.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 47.

Minnesota Statutes 2014, section 154.161, subdivision 7, is amended to read:

Subd. 7.

Reinstatement.

The board may reinstate a suspended, revoked, or surrendered certificate of registration or shop registration card, on petition of the former or suspended registrant. The board may in its sole discretion place any conditions on reinstatement of a suspended, revoked, or surrendered certificate of registration or shop registration card that it finds appropriate and necessary to ensure that the purposes of sections 154.001, 154.002, 154.003, 154.01 to deleted text begin 154.161deleted text end new text begin 154.162new text end , 154.19 to 154.21, and 154.24 to deleted text begin 154.26deleted text end new text begin 154.28new text end are met. No certificate of registration or shop registration card may be reinstated until the former registrant has completed at least one-half of the suspension period.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 48.

Minnesota Statutes 2014, section 154.162, is amended to read:

154.162 ADMINISTRATIVE PENALTIES.

The board shall impose and collect the following penalties:

(1) missing or lapsed shop registration discovered upon inspection; penalty imposed on shop owner: new text begin up to new text end $500;

(2) unregistered deleted text begin apprentice or registereddeleted text end barber, first occurrence discovered upon inspection; penalty imposed on shop owner and unlicensed or unregistered individual: new text begin up to new text end $500; and

(3) unregistered deleted text begin apprentice or registereddeleted text end barber, second occurrence discovered upon inspection; penalty imposed on shop owner and unlicensed or unregistered individual: new text begin up to new text end $1,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 49.

Minnesota Statutes 2014, section 154.19, is amended to read:

154.19 VIOLATIONS.

Each of the following constitutes a misdemeanor:

(1) The violation of any of the provisions of section 154.01;

(2) Permitting any person in one's employ, supervision, or control to practice as a registered barber deleted text begin or registered apprenticedeleted text end unless that person has a certificate of registration as a registered barber deleted text begin or registered apprenticedeleted text end ;

(3) Obtaining or attempting to obtain a certificate of registration for money other than the required fee, or any other thing of value, or by fraudulent misrepresentation;

(4) Practicing or attempting to practice by fraudulent misrepresentation;

(5) The willful failure to display a certificate of registration as required by section 154.14;

(6) The use of any room or place for barbering which is also used for residential or business purposes, except the sale of hair tonics, lotions, creams, cutlery, toilet articles, cigars, tobacco, candies in original package, and such commodities as are used and sold in barber shops, and except that shoeshining and an agency for the reception and delivery of laundry, or either, may be conducted in a barber shop without the same being construed as a violation of this section, unless a substantial partition of ceiling height separates the portion used for residential or business purposes, and where a barber shop is situated in a residence, poolroom, confectionery, store, restaurant, garage, clothing store, liquor store, hardware store, or soft drink parlor, there must be an outside entrance leading into the barber shop independent of any entrance leading into such business establishment, except that this provision as to an outside entrance shall not apply to barber shops in operation at the time of the passage of this section and except that a barber shop and deleted text begin beauty parlor deleted text end new text begin cosmetology salonnew text end may be operated in conjunction, without the same being separated by partition of ceiling height;

(7) The failure or refusal of any barber or other person in charge of any barber shop, or any person in barber schools or colleges doing barber service work, to use separate and clean towels for each customer or patron, or to discard and launder each towel after once being used;

(8) The failure or refusal by any barber or other person in charge of any barber shop or barber school or barber college to supply clean hot and cold water in such quantities as may be necessary to conduct such shop, or the barbering service of such school or college, in a sanitary manner, or the failure or refusal of any such person to have water and sewer connections from such shop, or barber school or college, with municipal water and sewer systems where the latter are available for use, or the failure or refusal of any such person to maintain a receptacle for hot water of a capacity of not less than five gallons;

(9) For the purposes of this section, barbers, students, deleted text begin apprentices,deleted text end or the proprietor or manager of a barber shop, or barber school or barber college, shall be responsible for all violations of the deleted text begin sanitarydeleted text end new text begin sanitation and disinfectionnew text end provisions of this sectiondeleted text begin , anddeleted text end new text begin .new text end If any new text begin barber workstation in any new text end barber shop, or barber school or barber college, upon inspection, shall be found to be in an unsanitary condition, the person making such inspection shall immediately issue an order to place the barber shop, or barber school, or barber college, in a sanitary condition, in a manner and within a time satisfactory to the Board of Barber Examiners, and for the failure to comply with such order the board shall immediately file a complaint for the arrest of the persons upon whom the order was issued, and any registered barber who shall fail to comply with the rules adopted by the Board of Barber Examiners, with the approval of the state commissioner of health, or the violation or commission of any of the offenses described in this section and section 154.161, subdivision 4, paragraph (a), clauses (1), (3), and (4) to (12), shall be fined not less than $10 or imprisoned for ten days and not more than $100 or imprisoned for 90 days.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 50.

Minnesota Statutes 2014, section 154.21, is amended to read:

154.21 PERJURY.

The willful making of any false statement as to a material matter in any oath or affidavit which is required by the provisions of sections 154.001, 154.002, 154.003, 154.01 to deleted text begin 154.161deleted text end new text begin 154.162new text end , 154.19 to 154.21, and 154.24 to deleted text begin 154.26deleted text end new text begin 154.28new text end is perjury and punishable as such.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 51.

Minnesota Statutes 2014, section 154.24, is amended to read:

154.24 RULES.

The Board of Barber Examiners shall have authority to make reasonable rules for the administration of the provisions of sections 154.001, 154.002, 154.003, 154.01 to deleted text begin 154.161 deleted text end new text begin 154.162new text end , 154.19 to 154.21, and 154.24 to deleted text begin 154.26deleted text end new text begin 154.28new text end and prescribe deleted text begin sanitarydeleted text end new text begin sanitation and disinfectionnew text end requirements for barber shops and barber schools, subject to the approval of the state commissioner of health. Any member of the board, or its agents or assistants, shall have authority to enter upon and to inspect any barber shop or barber school at any time during business hours. A copy of the rules adopted by the board shall be furnished by it to the owner or manager of each barber shop or barber school and such copy shall be posted in a conspicuous place in such barber shop or barber school.

The board shall keep a record of its proceedings relating to the issuance, refusal, renewal, suspension, and revocation of certificates of registration. This record shall contain the name, place of businessnew text begin ,new text end and residence of each registered barber deleted text begin and registered apprenticedeleted text end , and the date and number of the certificate of registration. This record shall be open to public inspection at all reasonable times.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 52.

Minnesota Statutes 2014, section 154.25, is amended to read:

154.25 NOT TO SERVE CERTAIN PERSONS.

No person practicing the occupation of a barber in any barber shop, barber school, or college in this state shall knowingly serve a person afflicted, in a dangerous or infectious state of deleted text begin thedeleted text end disease, with deleted text begin erysipelas, eczema, impetigo, sycosis, ordeleted text end any deleted text begin otherdeleted text end contagious or infectious disease. Any person so afflicted is hereby prohibited from being served in any barber shop, barber school, or college in this state. Any violation of this section shall be considered a misdemeanor as provided for in sections 154.001, 154.002, 154.003, 154.01 to deleted text begin 154.161deleted text end new text begin 154.162new text end , 154.19 to 154.21, and 154.24 to deleted text begin 154.26deleted text end new text begin 154.28new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 53.

Minnesota Statutes 2014, section 161.368, is amended to read:

161.368 HIGHWAY CONTRACTS WITH TRIBAL AUTHORITIES.

new text begin (a) new text end On behalf of the state, the commissioner may enter into agreements with Indian tribal authorities for the purpose of providing maintenance, design, and construction to highways on tribal lands. These agreements may include (1) a provision for waiver of immunity from suit by a party to the contract on the part of the tribal authority with respect to any controversy arising out of the contract and (2) a provision conferring jurisdiction on state district courts to hear such a controversy.

new text begin (b) Notwithstanding section 161.32, for construction of highways on tribal lands in a reservation exempt from Public Law 83-280, the commissioner may: (1) award a preference for Indian-owned contractors to the same extent provided in the applicable Tribal Employment Rights Ordinance, but not to exceed ten percent; or (2) negotiate with the tribal authority and enter into an agreement for the tribal authority to award and administer the construction contract, with the commissioner providing funding for the state share of the project. If negotiating with the tribal authority, the commissioner must perform an independent cost estimate and determine that the cost proposed by the tribal authority is reasonable. An agreement negotiated with a tribal authority must include a clause requiring conformance with plans and specifications approved by the commissioner. new text end

Sec. 54.

Minnesota Statutes 2014, section 197.455, subdivision 1, is amended to read:

Subdivision 1.

Application.

(a) This section shall govern preference of a veteran under the civil service laws, charter provisions, ordinances, rules or regulations of a county,new text begin home rule charter or statutorynew text end city, town, school district, or other municipality or political subdivision of this state. Any provision in a law, charter, ordinance, rule or regulation contrary to the applicable provisions of this section is void to the extent of such inconsistency.

(b) Sections 197.46 to 197.481 also apply to a veteran who is an incumbent in a classified appointment in the state civil service and has completed the probationary period for that position, as defined under section 43A.16. In matters of dismissal from such a position, a qualified veteran has the irrevocable option of using the procedures described in sections 197.46 to 197.481, or the procedures provided in the collective bargaining agreement applicable to the person, but not both. For a qualified veteran electing to use the procedures of sections 197.46 to 197.481, the matters governed by those sections must not be considered grievances under a collective bargaining agreement, and if a veteran elects to appeal the dispute through those sections, the veteran is precluded from making an appeal under the grievance procedure of the collective bargaining agreement.

new text begin (c) A county, home rule charter or statutory city, town, school district, or other municipality or political subdivision may require a veteran to complete an initial hiring probationary period, as defined under section 43A.16. In matters of dismissal, a veteran employed by a county, home rule charter or statutory city, town, school district, or other municipality or political subdivision is entitled to the same rights and legal protections that state employees receive under paragraph (b). new text end

Sec. 55.

Minnesota Statutes 2015 Supplement, section 197.46, is amended to read:

197.46 VETERANS PREFERENCE ACT; REMOVAL FORBIDDEN; RIGHT OF MANDAMUS.

(a) Any person whose rights may be in any way prejudiced contrary to any of the provisions of this section, deleted text begin shall bedeleted text end new text begin isnew text end entitled to a writ of mandamus to remedy the wrong. new text begin After any initial hiring probationary period expires, new text end no person holding a position new text begin either in the state civil service or new text end by appointment or employment in deleted text begin the several countiesdeleted text end new text begin any countynew text end , deleted text begin citiesdeleted text end new text begin home rule charter or statutory citynew text end , deleted text begin townsdeleted text end new text begin townnew text end , school deleted text begin districts and alldeleted text end new text begin district, or any new text end other political deleted text begin subdivisionsdeleted text end new text begin subdivisionnew text end in the statedeleted text begin ,deleted text end who is a veteran separated from the military service under honorable conditions, shall be removed from deleted text begin suchdeleted text end new text begin thenew text end position or employment except for incompetency or misconduct shown after a hearing, upon due notice, upon stated charges, in writing.

(b) Any veteran who has been notified of the intent to discharge the veteran from an appointed position or employment pursuant to this section shall be notified in writing of deleted text begin suchdeleted text end new text begin thenew text end intent to discharge and of the veteran's right to request a hearing within deleted text begin 60deleted text end new text begin 30new text end days of receipt of the notice of intent to discharge. The failure of a veteran to request a hearing within the provided deleted text begin 60-daydeleted text end new text begin 30-daynew text end period deleted text begin shall constitutedeleted text end new text begin constitutesnew text end a waiver of the right to a hearing. deleted text begin Suchdeleted text end new text begin Thenew text end failure deleted text begin shalldeleted text end also deleted text begin waivedeleted text end new text begin waivesnew text end all other available legal remedies for reinstatement.

Request for a hearing concerning such a discharge shall be made in writing and submitted by mail or personal service to the employment office of the concerned employer or other appropriate office or person. If the veteran requests a hearing under this section, deleted text begin suchdeleted text end new text begin thenew text end written request must also contain the veteran's election to be heard by a civil service board or commission, a merit authority, or deleted text begin a three-person paneldeleted text end new text begin an arbitrator new text end as defined in paragraph (c). If the veteran fails to identify the veteran's election, the governmental subdivision may select the hearing body.

(c) In all governmental subdivisions having an established civil service board or commission, or merit system authority, deleted text begin suchdeleted text end new text begin the veteran may elect to have the new text end hearing for removal or discharge deleted text begin shall be helddeleted text end before deleted text begin suchdeleted text end new text begin thenew text end civil service board or commission or merit system authoritynew text begin , or before an arbitrator as specified in this paragraphnew text end . Where no deleted text begin suchdeleted text end civil service board or commission or merit system authority exists, deleted text begin suchdeleted text end new text begin thenew text end hearing shall be held by deleted text begin a board of three persons appointed as follows: one by the governmental subdivision, one by the veteran, and the third by the two so selecteddeleted text end new text begin an arbitratornew text end .new text begin In cases where a hearing will be held by an arbitrator, the employer shall request from the Bureau of Mediation Services a list of seven persons to serve as an arbitrator. The employer shall strike the first name from the list and the parties shall alternately strike names from the list until the name of one arbitrator remains. After receiving each of the employer's elections to strike a person from the list, the veteran has 48 hours to strike a person from the list. The person remaining after the striking procedure must be the arbitrator. Upon the selection of the arbitrator, the employer shall notify the designated arbitrator and request available dates to hold the hearing.new text end In the event that the hearing is authorized to be held before deleted text begin a three-person boarddeleted text end new text begin an arbitratornew text end , the governmental subdivision's notice of intent to discharge shall state that the veteran must respond within deleted text begin 60deleted text end new text begin 30new text end days of receipt of the notice of intent to dischargenew text begin .new text end deleted text begin , and provide in writing to the governmental subdivision the name, United States mailing address, and telephone number of the veteran's selected representative for the three-person board. The failure of a veteran to submit the name, address, and telephone number of the veteran's selected representative to the governmental subdivision by mail or by personal service within the provided notice's 60-day period, shall constitute a waiver of the veteran's right to the hearing and all other legal remedies available for reinstatement of the veteran's employment position. In the event the two persons selected by the veteran and governmental subdivision do not appoint the third person within ten days after the appointment of the last of the two, then the judge of the district court of the county wherein the proceeding is pending, or if there be more than one judge in said county then any judge in chambers, shall have jurisdiction to appoint, and Upon application of either or both of the two so selected shall appoint, the third person to the board and the person so appointed by the judge with the two first selected shall constitute the board.deleted text end

(d) Either the veteran or the governmental subdivision may appeal from the decision of the deleted text begin boarddeleted text end new text begin hearing bodynew text end upon the charges to the district court by causing written notice of appeal, stating the grounds deleted text begin thereofdeleted text end new text begin of the appealnew text end , to be served upon the other party within 15 days after notice of the decision and by filing the original notice of appeal with proof of service deleted text begin thereofdeleted text end in the office of the court administrator of the district court within ten days after service thereof. Nothing in section 197.455 or this section shall be construed to apply to the position of private secretary, superintendent of schools, or one chief deputy of any elected official or head of a department, or to any person holding a strictly confidential relation to the appointing officer. Nothing in this section shall be construed to apply to the position of teacher. The burden of establishing such relationship shall be upon the appointing officer in all proceedings and actions relating thereto.

(e) For disputes heard by a civil service board, new text begin commission or merit system authority, or an arbitrator, new text end the deleted text begin politicaldeleted text end new text begin governmentalnew text end subdivisions shall bear all costs associated with the hearing but not including attorney fees for attorneys representing the veteran. deleted text begin For disputes heard by a three-person panel, all parties shall bear equally all costs associated with the hearing, but not including attorney fees for attorneys representing the veteran.deleted text end If the veteran prevails in a dispute heard by a civil service board deleted text begin or a three-person paneldeleted text end new text begin , commission or merit system authority, or an arbitratornew text end and the hearing reverses deleted text begin all aspects ofdeleted text end new text begin the level of the alleged incompetency or misconduct requiring new text end discharge, the governmental subdivision shall pay the veteran's reasonable attorney fees.

(f) All officers, boards, commissions, and employees shall conform to, comply with, and aid in all proper ways in carrying into effect the provisions of section 197.455 and this section notwithstanding any laws, charter provisions, ordinances or rules to the contrary. Any willful violation of such sections by officers, officials, or employees is a misdemeanor.

Sec. 56.

new text begin [240A.085] JAMES METZEN MIGHTY DUCKS ICE CENTER DEVELOPMENT ACT. new text end

new text begin Sections 240A.085 to 240A.11 may be cited as the James Metzen Mighty Ducks Ice Center Development Act. new text end

Sec. 57.

Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:

Subd. 19b.

Subtractions from federal taxable income.

For individuals, estates, and trusts, there shall be subtracted from federal taxable income:

(1) net interest income on obligations of any authority, commission, or instrumentality of the United States to the extent includable in taxable income for federal income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income tax to Minnesota or to any other state, for any previous taxable year, whether the amount is received as a refund or as a credit to another taxable year's income tax liability;

(3) the amount paid to others, less the amount used to claim the credit allowed under section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and transportation of each qualifying child in attending an elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory attendance laws, which is not operated for profit, and which adheres to the provisions of the Civil Rights Act of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, "textbooks" includes books and other instructional materials and equipment purchased or leased for use in elementary and secondary schools in teaching only those subjects legally and commonly taught in public elementary and secondary schools in this state. Equipment expenses qualifying for deduction includes expenses as defined and limited in section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional books and materials used in the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship, nor does it include books or materials for, or transportation to, extracurricular activities including sporting events, musical or dramatic events, speech activities, driver's education, or similar programs. No deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehicle to provide such transportation for a qualifying child. For purposes of the subtraction provided by this clause, "qualifying child" has the meaning given in section 32(c)(3) of the Internal Revenue Code;

(4) income as provided under section 290.0802;

(5) to the extent included in federal adjusted gross income, income realized on disposition of property exempt from tax under section 290.491;

(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) of the Internal Revenue Code in determining federal taxable income by an individual who does not itemize deductions for federal income tax purposes for the taxable year, an amount equal to 50 percent of the excess of charitable contributions over $500 allowable as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, under the provisions of Public Law 109-1 and Public Law 111-126;

(7) for individuals who are allowed a federal foreign tax credit for taxes that do not qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover of subnational foreign taxes for the taxable year, but not to exceed the total subnational foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, "federal foreign tax credit" means the credit allowed under section 27 of the Internal Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed under section 904(c) of the Internal Revenue Code minus national level foreign taxes to the extent they exceed the federal foreign tax credit;

(8) in each of the five tax years immediately following the tax year in which an addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, clause (12), in the case of a shareholder of an S corporation, minus the positive value of any net operating loss under section 172 of the Internal Revenue Code generated for the tax year of the addition. The resulting delayed depreciation cannot be less than zero;

(9) job opportunity building zone income as provided under section 469.316;

(10) to the extent included in federal taxable income, the amount of compensation paid to members of the Minnesota National Guard or other reserve components of the United States military for active service, including compensation for services performed under the Active Guard Reserve (AGR) program. For purposes of this clause, "active service" means (i) state active service as defined in section 190.05, subdivision 5a, clause (1); or (ii) federally funded state active service as defined in section 190.05, subdivision 5b, and "active service" includes service performed in accordance with section 190.08, subdivision 3;

(11) to the extent included in federal taxable income, the amount of compensation paid to Minnesota residents who are members of the armed forces of the United States or United Nations for active duty performed under United States Code, title 10; or the authority of the United Nations;

(12) an amount, not to exceed $10,000, equal to qualified expenses related to a qualified donor's donation, while living, of one or more of the qualified donor's organs to another person for human organ transplantation. For purposes of this clause, "organ" means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; "human organ transplantation" means the medical procedure by which transfer of a human organ is made from the body of one person to the body of another person; "qualified expenses" means unreimbursed expenses for both the individual and the qualified donor for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses may be subtracted under this clause only once; and "qualified donor" means the individual or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An individual may claim the subtraction in this clause for each instance of organ donation for transplantation during the taxable year in which the qualified expenses occur;

(13) in each of the five tax years immediately following the tax year in which an addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the case of a shareholder of a corporation that is an S corporation, minus the positive value of any net operating loss under section 172 of the Internal Revenue Code generated for the tax year of the addition. If the net operating loss exceeds the addition for the tax year, a subtraction is not allowed under this clause;

(14) to the extent included in the federal taxable income of a nonresident of Minnesota, compensation paid to a service member as defined in United States Code, title 10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2);

(15) to the extent included in federal taxable income, the amount of national service educational awards received from the National Service Trust under United States Code, title 42, sections 12601 to 12604, for service in an approved Americorps National Service program;

(16) to the extent included in federal taxable income, discharge of indebtedness income resulting from reacquisition of business indebtedness included in federal taxable income under section 108(i) of the Internal Revenue Code. This subtraction applies only to the extent that the income was included in net income in a prior year as a result of the addition under subdivision 19a, clause (13);

(17) the amount of the net operating loss allowed under section 290.095, subdivision 11, paragraph (c);

(18) the amount of expenses not allowed for federal income tax purposes due to claiming the railroad track maintenance credit under section 45G(a) of the Internal Revenue Code;

(19) the amount of the limitation on itemized deductions under section 68(b) of the Internal Revenue Code;

(20) the amount of the phaseout of personal exemptions under section 151(d) of the Internal Revenue Code; and

(21) deleted text begin to the extent included in federal taxable income, the amount of qualified transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal Revenue Code. The subtraction is limited to the lesser of the amount of qualified transportation fringe benefits received in excess of the limitations under section 132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A) of the Internal Revenue Codedeleted text end new text begin to the extent included in federal taxable income, compensation received from a pension or other retirement pay from the federal government for service in the military, as computed under United States Code, title 10, sections 1401 to 1414, 1447 to 1455, and 12733. The subtraction must not include any amount used to claim the credit allowed under section 290.0677new text end .

new text begin EFFECTIVE DATE. new text end

new text begin The striking of the qualified fringe benefits subtraction is effective the day following final enactment, except the changes incorporated by federal changes are effective retroactively at the same time as the changes were effective for federal purposes. The new subtraction for pension or other military retirement pay is effective for taxable years beginning after December 31, 2015. new text end

Sec. 58.

Minnesota Statutes 2014, section 327C.03, subdivision 6, is amended to read:

Subd. 6.

Payment to the Minnesota manufactured home relocation trust fund.

In the event a park owner has been assessed under section 327C.095, subdivision 12, paragraph (c), the park owner may collect the deleted text begin $12deleted text end new text begin $15new text end annual payment required by section 327C.095, subdivision 12, for participation in the relocation trust fund, as a lump sum or, along with monthly lot rent, a fee of no more than deleted text begin $1deleted text end new text begin $1.25new text end per month to cover the cost of participating in the relocation trust fund. The deleted text begin $1deleted text end new text begin $1.25new text end fee must be separately itemized and clearly labeled "Minnesota manufactured home relocation trust fund."

Sec. 59.

Minnesota Statutes 2014, section 327C.095, subdivision 12, is amended to read:

Subd. 12.

Payment to the Minnesota manufactured home relocation trust fund.

(a) If a manufactured home owner is required to move due to the conversion of all or a portion of a manufactured home park to another use, the closure of a park, or cessation of use of the land as a manufactured home park, the manufactured park owner shall, upon the change in use, pay to the commissioner of management and budget for deposit in the Minnesota manufactured home relocation trust fund under section 462A.35, the lesser amount of the actual costs of moving or purchasing the manufactured home approved by the neutral third party and paid by the Minnesota Housing Finance Agency under subdivision 13, paragraph (a) or (e), or $3,250 for each single section manufactured home, and $6,000 for each multisection manufactured home, for which a manufactured home owner has made application for payment of relocation costs under subdivision 13, paragraph (c). The manufactured home park owner shall make payments required under this section to the Minnesota manufactured home relocation trust fund within 60 days of receipt of invoice from the neutral third party.

(b) A manufactured home park owner is not required to make the payment prescribed under paragraph (a), nor is a manufactured home owner entitled to compensation under subdivision 13, paragraph (a) or (e), if:

(1) the manufactured home park owner relocates the manufactured home owner to another space in the manufactured home park or to another manufactured home park at the park owner's expense;

(2) the manufactured home owner is vacating the premises and has informed the manufactured home park owner or manager of this prior to the mailing date of the closure statement under subdivision 1;

(3) a manufactured home owner has abandoned the manufactured home, or the manufactured home owner is not current on the monthly lot rental, personal property taxes;

(4) the manufactured home owner has a pending eviction action for nonpayment of lot rental amount under section 327C.09, which was filed against the manufactured home owner prior to the mailing date of the closure statement under subdivision 1, and the writ of recovery has been ordered by the district court;

(5) the conversion of all or a portion of a manufactured home park to another use, the closure of a park, or cessation of use of the land as a manufactured home park is the result of a taking or exercise of the power of eminent domain by a governmental entity or public utility; or

(6) the owner of the manufactured home is not a resident of the manufactured home park, as defined in section 327C.01, subdivision 9, or the owner of the manufactured home is a resident, but came to reside in the manufactured home park after the mailing date of the closure statement under subdivision 1.

(c) If the unencumbered fund balance in the manufactured home relocation trust fund is less than $1,000,000 as of June 30 of each year, the commissioner of management and budget shall assess each manufactured home park owner by mail the total amount of deleted text begin $12deleted text end new text begin $15new text end for each licensed lot in their park, payable on or before September 15 of that year. The commissioner of management and budget shall deposit any payments in the Minnesota manufactured home relocation trust fund. On or before July 15 of each year, the commissioner of management and budget shall prepare and distribute to park owners a letter explaining whether funds are being collected for that year, information about the collection, an invoice for all licensed lots, and a sample form for the park owners to collect information on which park residents have been accounted for. If assessed under this paragraph, the park owner may recoup the cost of the deleted text begin $12deleted text end new text begin $15new text end assessment as a lump sum or as a monthly fee of no more than deleted text begin $1deleted text end new text begin $1.25new text end collected from park residents together with monthly lot rent as provided in section 327C.03, subdivision 6. Park owners may adjust payment for lots in their park that are vacant or otherwise not eligible for contribution to the trust fund under section 327C.095, subdivision 12, paragraph (b), and deduct from the assessment accordingly.

(d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action in a court of appropriate jurisdiction. The court may award a prevailing party reasonable attorney fees, court costs, and disbursements.

Sec. 60.

Minnesota Statutes 2014, section 327C.095, subdivision 13, is amended to read:

Subd. 13.

Change in use, relocation expenses; payments by park owner.

(a) If a manufactured home owner is required to relocate due to the conversion of all or a portion of a manufactured home park to another use, the closure of a manufactured home park, or cessation of use of the land as a manufactured home park under subdivision 1, and the manufactured home owner complies with the requirements of this section, the manufactured home owner is entitled to payment from the Minnesota manufactured home relocation trust fund equal to the manufactured home owner's actual relocation costs for relocating the manufactured home to a new location within a 25-mile radius of the park that is being closed, up to a maximum of deleted text begin $4,000deleted text end new text begin $7,000new text end for a single-section and deleted text begin $8,000 deleted text end new text begin $12,500new text end for a multisection manufactured home. The actual relocation costs must include the reasonable cost of taking down, moving, and setting up the manufactured home, including equipment rental, utility connection and disconnection charges, minor repairs, modifications necessary for transportation of the home, necessary moving permits and insurance, moving costs for any appurtenances, which meet applicable local, state, and federal building and construction codes.

(b) A manufactured home owner is not entitled to compensation under paragraph (a) if the manufactured home park owner is not required to make a payment to the Minnesota manufactured home relocation trust fund under subdivision 12, paragraph (b).

(c) Except as provided in paragraph (e), in order to obtain payment from the Minnesota manufactured home relocation trust fund, the manufactured home owner shall submit to the neutral third party and the Minnesota Housing Finance Agency, with a copy to the park owner, an application for payment, which includes:

(1) a copy of the closure statement under subdivision 1;

(2) a copy of the contract with a moving or towing contractor, which includes the relocation costs for relocating the manufactured home;

(3) a statement with supporting materials of any additional relocation costs as outlined in subdivision 1;

(4) a statement certifying that none of the exceptions to receipt of compensation under subdivision 12, paragraph (b), apply to the manufactured home owner;

(5) a statement from the manufactured park owner that the lot rental is current and that the annual deleted text begin $12deleted text end new text begin $15new text end payments to the Minnesota manufactured home relocation trust fund have been paid when due; and

(6) a statement from the county where the manufactured home is located certifying that personal property taxes for the manufactured home are paid through the end of that year.

(d) If the neutral third party has acted reasonably and does not approve or deny payment within 45 days after receipt of the information set forth in paragraph (c), the payment is deemed approved. Upon approval and request by the neutral third party, the Minnesota Housing Finance Agency shall issue two checks in equal amount for 50 percent of the contract price payable to the mover and towing contractor for relocating the manufactured home in the amount of the actual relocation cost, plus a check to the home owner for additional certified costs associated with third-party vendors, that were necessary in relocating the manufactured home. The moving or towing contractor shall receive 50 percent upon execution of the contract and 50 percent upon completion of the relocation and approval by the manufactured home owner. The moving or towing contractor may not apply the funds to any other purpose other than relocation of the manufactured home as provided in the contract. A copy of the approval must be forwarded by the neutral third party to the park owner with an invoice for payment of the amount specified in subdivision 12, paragraph (a).

(e) In lieu of collecting a relocation payment from the Minnesota manufactured home relocation trust fund under paragraph (a), the manufactured home owner may collect an amount from the fund after reasonable efforts to relocate the manufactured home have failed due to the age or condition of the manufactured home, or because there are no manufactured home parks willing or able to accept the manufactured home within a 25-mile radius. A manufactured home owner may tender title of the manufactured home in the manufactured home park to the manufactured home park owner, and collect an amount to be determined by an independent appraisal. The appraiser must be agreed to by both the manufactured home park owner and the manufactured home owner. new text begin If the appraised market value cannot be determined, the tax market value, averaged over a period of five years, can be used as a substitute. new text end Thenew text begin maximumnew text end amount that may be reimbursed under the fund is deleted text begin a maximum of $5,000deleted text end new text begin $8,000new text end for a single-section and deleted text begin $9,000deleted text end new text begin $14,500new text end for a multisection manufactured home.new text begin The minimum amount that may be reimbursed under the fund is $2,000 for a single section and $4,000 for a multisection manufactured home.new text end The manufactured home owner shall deliver to the manufactured home park owner the current certificate of title to the manufactured home duly endorsed by the owner of record, and valid releases of all liens shown on the certificate of title, and a statement from the county where the manufactured home is located evidencing that the personal property taxes have been paid. The manufactured home owner's application for funds under this paragraph must include a document certifying that the manufactured home cannot be relocated, that the lot rental is current, that the annual deleted text begin $12deleted text end new text begin $15new text end payments to the Minnesota manufactured home relocation trust fund have been paid when due, that the manufactured home owner has chosen to tender title under this section, and that the park owner agrees to make a payment to the commissioner of management and budget in the amount established in subdivision 12, paragraph (a), less any documented costs submitted to the neutral third party, required for demolition and removal of the home, and any debris or refuse left on the lot, not to exceed $1,000. The manufactured home owner must also provide a copy of the certificate of title endorsed by the owner of record, and certify to the neutral third party, with a copy to the park owner, that none of the exceptions to receipt of compensation under subdivision 12, paragraph (b), clauses (1) to (6), apply to the manufactured home owner, and that the home owner will vacate the home within 60 days after receipt of payment or the date of park closure, whichever is earlier, provided that the monthly lot rent is kept current.

(f) The Minnesota Housing Finance Agency must make a determination of the amount of payment a manufactured home owner would have been entitled to under a local ordinance in effect on May 26, 2007. Notwithstanding paragraph (a), the manufactured home owner's compensation for relocation costs from the fund under section 462A.35, is the greater of the amount provided under this subdivision, or the amount under the local ordinance in effect on May 26, 2007, that is applicable to the manufactured home owner. Nothing in this paragraph is intended to increase the liability of the park owner.

(g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall be liable to any person for recovery if the funds in the Minnesota manufactured home relocation trust fund are insufficient to pay the amounts claimed. The Minnesota Housing Finance Agency shall keep a record of the time and date of its approval of payment to a claimant.

(h) The agency shall report to the chairs of the senate Finance Committee and house of representatives Ways and Means Committee by January 15 of each year on the Minnesota manufactured home relocation trust fund, including the account balance, payments to claimants, the amount of any advances to the fund, the amount of any insufficiencies encountered during the previous calendar year, and any administrative charges or expenses deducted from the trust fund balance. If sufficient funds become available, the Minnesota Housing Finance Agency shall pay the manufactured home owner whose unpaid claim is the earliest by time and date of approval.

Sec. 61.

new text begin PLAQUE OR MARKER AUTHORIZED TO HONOR CAPITOL CONSTRUCTION WORKERS. new text end

new text begin (a) The commissioner of administration shall place a plaque or three-dimensional marker in the State Capitol building in a space easily visible to public visitors to recognize and honor the efforts and sacrifice of workers who constructed the State Capitol building, as well as those who worked on subsequent projects to preserve the building. The plaque or marker shall specifically honor the six workers who died during construction of the State Capitol building. The Capitol Area Architectural and Planning Board and the Minnesota Historical Society shall set the parameters and location for the memorial plaque or marker. new text end

new text begin (b) The Capitol Area Architectural and Planning Board shall conduct an opportunity contest for sixth graders from across the state to submit designs for the memorial plaque or marker. The board shall select a design from those submissions to be used as a basis for the final production of this plaque or marker by January 1, 2017. The memorial plaque or marker shall be installed during the State Capitol remodel. new text end

Sec. 62.

new text begin STUDY ON VETERANS' UNMET NEEDS FOR BEHAVIOR AND MENTAL HEALTH SERVICES. new text end

new text begin The commissioner of veterans affairs shall perform a study to quantify and describe unmet needs amongst Minnesota veterans for behavioral and mental health services. The study will include conducting focus groups of stakeholders, including veterans and their families, representatives of the United States Veterans Administration, community referral centers, and county veteran service officers. The commissioner of veterans affairs may contract with a statewide nonprofit organization to conduct the study. The commissioner of veterans affairs shall report by February 15, 2017, to the chairs and ranking minority members of the committees in the house of representatives and the senate with jurisdiction over veterans policy and budget with the findings of the study and with recommendations about how current services provided to veterans could be expanded to better meet the needs identified by the study. new text end

Sec. 63.

new text begin FEASIBILITY STUDY ON PARTNERSHIPS TO PROVIDE INTERIM HOUSING FOR DISABLED VETERANS. new text end

new text begin The commissioner of veterans affairs shall study the feasibility of partnering with an established nonprofit organization to provide interim housing for disabled veterans in conjunction with fully integrated and customizable support services. The commissioner of veterans affairs shall submit a report including its findings and recommendations regarding the feasibility of such a partnership to the chairs and ranking minority members of the standing committees in the house of representatives and the senate having jurisdiction over veterans affairs by February 15, 2017. new text end

Sec. 64.

new text begin MEMORIAL COMMEMORATING RECIPIENTS OF THE MEDAL OF HONOR. new text end

new text begin Subdivision 1. new text end

new text begin Medal of Honor Memorial on the State Capitol grounds. new text end

new text begin Subject to approval by the Capitol Area Architectural and Planning Board, the commissioner of administration shall place a memorial on the State Capitol grounds to honor Minnesotans awarded the Medal of Honor. new text end

new text begin Subd. 2. new text end

new text begin Gifts and grants. new text end

new text begin The commissioner of veterans affairs may solicit gifts, grants, or donations of any kind from any private or public source to carry out the purposes of this section. A Medal of Honor Memorial account is created in the special revenue fund. All gifts, grants, or donations received by the commissioner shall be deposited in a Medal of Honor Memorial account in the special revenue fund. Money in the account is appropriated to the commissioner of administration for predesign, design, construction, and ongoing maintenance of the memorial. new text end

new text begin Subd. 3. new text end

new text begin Restrictions. new text end

new text begin Money deposited in the Medal of Honor Memorial account is not available until the commissioner of management and budget has determined an amount sufficient to complete predesign of the memorial has been committed to the project from nonstate sources. The commissioner of administration shall not begin construction on this project until money in the account is sufficient to pay for all costs related to construction and ongoing maintenance of the memorial. new text end

Sec. 65.

new text begin LEGISLATIVE ADVISORY COMMISSION; FEDERAL FUNDS. new text end

new text begin The commissioner of management and budget, in consultation with legislative nonpartisan fiscal staff, shall review and recommend the federal funds that should not be subject to review by the Legislative Advisory Commission, under Minnesota Statutes, section 3.3005. The commissioner shall make this recommendation before the 2017 regular legislative session. new text end

Sec. 66.

new text begin LEGISLATIVE SURROGACY COMMISSION. new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin The Legislative Commission on Surrogacy shall consist of 15 members, appointed as follows: new text end

new text begin (1) three members of the senate appointed by the senate majority leader; new text end

new text begin (2) three members of the senate appointed by the senate minority leader; new text end

new text begin (3) three members of the house of representatives appointed by the speaker of the house; new text end

new text begin (4) three members of the house of representatives appointed by the house of representatives minority leader; new text end

new text begin (5) the commissioner of human services or the commissioner's designee; new text end

new text begin (6) the commissioner of health or the commissioner's designee; and new text end

new text begin (7) a family court referee appointed by the chief justice of the state Supreme Court. new text end

new text begin Appointments must be made by June 1, 2016. new text end

new text begin Subd. 2. new text end

new text begin Chair. new text end

new text begin The commission shall elect a chair from among its members. new text end

new text begin Subd. 3. new text end

new text begin Meetings. new text end

new text begin The ranking majority member of the commission who is appointed by the senate majority leader shall convene the first meeting by July 1, 2016. The commission shall have at least six meetings but may not have more than ten meetings. new text end

new text begin Subd. 4. new text end

new text begin Conflict of interest. new text end

new text begin A commission member may not participate in or vote on a decision of the commission in which the member has either a direct or indirect personal financial interest. A witness at a public meeting of the commission must disclose any financial conflict of interest. new text end

new text begin Subd. 5. new text end

new text begin Duties. new text end

new text begin The commission shall develop recommendations on public policy and laws regarding surrogacy. To develop the recommendations, the commission shall study surrogacy through public hearings, research, and deliberation. Topics for study include, but are not limited to: new text end

new text begin (1) potential health and psychological effects and benefits on women who serve as surrogates; new text end

new text begin (2) potential health and psychological effects and benefits on children born of surrogates; new text end

new text begin (3) business practices of the fertility industry, including attorneys, brokers, and clinics; new text end

new text begin (4) considerations related to different forms of surrogacy; new text end

new text begin (5) considerations related to the potential exploitation of women in surrogacy arrangements; new text end

new text begin (6) contract law implications when a surrogacy contract is breached; new text end

new text begin (7) potential conflicts with statutes governing private adoption and termination of parental rights; new text end

new text begin (8) potential for legal conflicts related to third-party reproduction, including conflicts between or amongst the surrogate mother, the intended parents, the child, insurance companies, and medical professionals; new text end

new text begin (9) public policy determinations of other jurisdictions with regard to surrogacy; and new text end

new text begin (10) information to be provided to a child born of a surrogate about the child's biological and gestational parents. new text end

new text begin Subd. 6. new text end

new text begin Reporting. new text end

new text begin The commission must submit a report including its recommendations and may draft legislation to implement its recommendations to the chairs and ranking minority members of the legislative committees with primary jurisdiction over health and judiciary in the house of representatives and senate by December 15, 2016. On topics where the commission fails to reach consensus, a majority and minority report shall be issued. new text end

new text begin Subd. 7. new text end

new text begin Staffing. new text end

new text begin The Legislative Coordinating Commission shall provide staffing and administrative support to the commission. new text end

new text begin Subd. 8. new text end

new text begin Expiration. new text end

new text begin The commission expires the day after submitting the report required under subdivision 6. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 67.

new text begin LCPFP STUDY OF JOINT BUDGET TARGET PROCESS; TIMING. new text end

new text begin The Legislative Commission on Planning and Fiscal Policy shall study and make recommendations to the legislature by January 15, 2017, on the process and timing for the legislature to establish joint budget targets. In preparing its recommendations, the commission must take public testimony. new text end

Sec. 68.

new text begin RULEMAKING. new text end

new text begin The Board of Barber Examiners may use expedited rulemaking procedures under Minnesota Statutes, section 14.389, to amend Minnesota Rules, chapter 2100, to conform with sections 29 to 52 and sections 69 and 70. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 69.

new text begin TRANSITIONING APPRENTICE BARBERS TO REGISTERED BARBERS. new text end

new text begin An apprentice barber practicing on August 1, 2016, is eligible to apply for registered barber status. An apprentice barber must take the registered barber examination to become a registered barber. All apprentice barber registrations will be discontinued on December 31, 2017. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016. new text end

Sec. 70.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2014, sections 154.03; 154.06; 154.11, subdivision 2; and 154.12, new text end new text begin are repealed effective August 1, 2016. new text end

ARTICLE 14

MISCELLANEOUS

Section 1.

new text begin [290.0685] CREDIT FOR PARENTS OF STILLBORN CHILDREN. new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual is allowed a credit against the tax imposed by this chapter equal to $2,000 for each birth for which a certificate of birth resulting in stillbirth has been issued under section 144.2151. The credit under this section is allowed only in the taxable year in which the stillbirth occurred and if the child would have been a dependent of the taxpayer as defined in section 152 of the Internal Revenue Code. new text end

new text begin (b) For a nonresident or part-year resident, the credit must be allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph (e). new text end

new text begin Subd. 2. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that an individual is allowed under this section exceeds the individual's tax liability under this chapter, the commissioner shall refund the excess to the individual. new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this section is appropriated to the commissioner from the general fund. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December 31, 2015. new text end

Sec. 2.

Minnesota Statutes 2014, section 297A.62, subdivision 3, is amended to read:

Subd. 3.

Manufactured housing and park trailersnew text begin ; modular housingnew text end .

new text begin (a) new text end For retail sales of manufactured homes as defined in section 327.31, subdivision 6, for residential uses, the sales tax under subdivisions 1 and 1a is imposed on 65 percent of the dealer's cost of the manufactured home. For retail sales of new or used park trailers, as defined in section 168.002, subdivision 23, the sales tax under subdivisions 1 and 1a is imposed on 65 percent of the sales price of the park trailer.

new text begin (b) For retail sales of a modular home as defined in section 297A.668, subdivision 8, paragraph (b), for residential uses, the sales tax under subdivisions 1 and 1a is imposed on 65 percent of the modular home manufacturer's sales price of the modular home. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June 30, 2016. new text end

Sec. 3.

Minnesota Statutes 2014, section 299A.41, subdivision 3, is amended to read:

Subd. 3.

Killed in the line of duty.

"Killed in the line of duty" does not include deaths from natural causesnew text begin , except as provided in this subdivisionnew text end . In the case of a deleted text begin peacedeleted text end new text begin public safetynew text end officer, deleted text begin "deleted text end killed in the line of dutydeleted text begin "deleted text end includes the death of deleted text begin andeleted text end new text begin a public safetynew text end officer caused by accidental means while the deleted text begin peacedeleted text end new text begin public safetynew text end officer is acting in the course and scope of duties as a deleted text begin peacedeleted text end new text begin public safety new text end officer.new text begin Killed in the line of duty also means if a public safety officer dies as the direct and proximate result of a heart attack, stroke, or vascular rupture, that officer shall be presumed to have died as the direct and proximate result of a personal injury sustained in the line of duty if:new text end

new text begin (1) that officer, while on duty: new text end

new text begin (i) engaged in a situation, and that engagement involved nonroutine stressful or strenuous physical law enforcement, fire suppression, rescue, hazardous material response, emergency medical services, prison security, disaster relief, or other emergency response activity; or new text end

new text begin (ii) participated in a training exercise, and that participation involved nonroutine stressful or strenuous physical activity; new text end

new text begin (2) that officer died as a result of a heart attack, stroke, or vascular rupture suffered: new text end

new text begin (i) while engaging or participating under clause (1); new text end

new text begin (ii) while still on duty after engaging or participating under clause (1); or new text end

new text begin (iii) not later than 24 hours after engaging or participating under clause (1); and new text end

new text begin (3) the presumption is not overcome by competent medical evidence to the contrary. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 4.

Minnesota Statutes 2014, section 299A.41, subdivision 4, is amended to read:

Subd. 4.

Public safety officer.

"Public safety officer" includes:

(1) a peace officer defined in section 626.84, subdivision 1, paragraph (c) or (d);

(2) a correction officer employed at a correctional facility and charged with maintaining the safety, security, discipline, and custody of inmates at the facility;

(3) an individual employed on a full-time basis by the state or by a fire department of a governmental subdivision of the state, who is engaged in any of the following duties:

(i) firefighting;

(ii) emergency motor vehicle operation;

(iii) investigation into the cause and origin of fires;

(iv) the provision of emergency medical services; or

(v) hazardous material responder;

(4) a legally enrolled member of a volunteer fire department or member of an independent nonprofit firefighting corporation who is engaged in the hazards of firefighting;

(5) a good samaritan while complying with the request or direction of a public safety officer to assist the officer;

(6) a reserve police officer or a reserve deputy sheriff while acting under the supervision and authority of a political subdivision;

(7) a driver or attendant with a licensed basic or advanced life-support transportation service who is engaged in providing emergency care;

(8) a first responder who is certified by the emergency medical services regulatory board to perform basic emergency skills before the arrival of a licensed ambulance service and who is a member of an organized service recognized by a local political subdivision to respond to medical emergencies to provide initial medical care before the arrival of an ambulance; and

(9) a person, other than a state trooper, employed by the commissioner of public safety and assigned to the State Patrol, whose primary employment new text begin duty new text end is new text begin either Capitol security or new text end the enforcement of commercial motor vehicle laws and regulations.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 5.

new text begin APPROPRIATION; PUBLIC SAFETY. new text end

new text begin $260,000 in fiscal year 2017 is appropriated from the general fund to the commissioner of public safety for payment of public safety officer survivor benefits. This is added to the appropriation in Laws 2015, chapter 75, article 1, section 5, subdivision 2, paragraph (b). new text end

ARTICLE 15

CHILDREN AND FAMILIES

Section 1.

Minnesota Statutes 2014, section 145.4716, subdivision 2, is amended to read:

Subd. 2.

Duties of director.

The director of child sex trafficking prevention is responsible for the following:

(1) developing and providing comprehensive training on sexual exploitation of youth for social service professionals, medical professionals, public health workers, and criminal justice professionals;

(2) collecting, organizing, maintaining, and disseminating information on sexual exploitation and services across the state, including maintaining a list of resources on the Department of Health Web site;

(3) monitoring and applying for federal funding for antitrafficking efforts that may benefit victims in the state;

(4) managing grant programs established under sections 145.4716 to 145.4718new text begin , and 609.3241, paragraph (c), clause (3)new text end ;

(5) managing the request for proposals for grants for comprehensive services, including trauma-informed, culturally specific services;

(6) identifying best practices in serving sexually exploited youth, as defined in section 260C.007, subdivision 31;

(7) providing oversight of and technical support to regional navigators pursuant to section 145.4717;

(8) conducting a comprehensive evaluation of the statewide program for safe harbor of sexually exploited youth; and

(9) developing a policy consistent with the requirements of chapter 13 for sharing data related to sexually exploited youth, as defined in section 260C.007, subdivision 31, among regional navigators and community-based advocates.

Sec. 2.

Minnesota Statutes 2014, section 145.4716, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Youth eligible for services. new text end

new text begin Youth 24 years of age or younger shall be eligible for all services, support, and programs provided under this section and section 145.4717, and all shelter, housing beds, and services provided by the commissioner of human services to sexually exploited youth and youth at risk of sexual exploitation. new text end

Sec. 3.

Minnesota Statutes 2014, section 256D.051, subdivision 6b, is amended to read:

Subd. 6b.

Federal reimbursement.

new text begin (a) new text end Federal financial participation from the United States Department of Agriculture for food stamp employment and training expenditures that are eligible for reimbursement through the food stamp employment and training program are dedicated funds and are annually appropriated to the commissioner of human services for the operation of the food stamp employment and training program.

new text begin (b) The appropriation must be used for skill attainment through employment, training, and support services for food stamp participants. By February 15, 2017, the commissioner shall report to the chairs and ranking minority members of the legislative committees having jurisdiction over the food stamp employment and training program on the progress of securing additional federal reimbursement dollars under this program. new text end

new text begin (c)new text end Federal financial participation for the nonstate portion of food stamp employment and training costs must be paid to the county agency new text begin or service provider new text end that incurred the costs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2016. new text end

Sec. 4.

Minnesota Statutes 2014, section 256N.26, subdivision 3, is amended to read:

Subd. 3.

Basic monthly rate.

From deleted text begin January 1, 2015deleted text end new text begin July 1, 2017new text end , to June 30, deleted text begin 2016deleted text end new text begin 2018new text end , the basic monthly rate must be according to the following schedule:

Ages 0-5 deleted text begin $565deleted text end new text begin $650 new text end per month
Ages 6-12 deleted text begin $670deleted text end new text begin $770 new text end per month
Ages 13 and older deleted text begin $790deleted text end new text begin $910 new text end per month

Sec. 5.

Minnesota Statutes 2015 Supplement, section 256P.06, subdivision 3, is amended to read:

Subd. 3.

Income inclusions.

The following must be included in determining the income of an assistance unit:

(1) earned income; and

(2) unearned income, which includes:

(i) interest and dividends from investments and savings;

(ii) capital gains as defined by the Internal Revenue Service from any sale of real property;

(iii) proceeds from rent and contract for deed payments in excess of the principal and interest portion owed on property;

(iv) income from trusts, excluding special needs and supplemental needs trusts;

(v) interest income from loans made by the participant or household;

(vi) cash prizes and winnings;

(vii) unemployment insurance income;

(viii) retirement, survivors, and disability insurance payments;

(ix) nonrecurring income over $60 per quarter unless earmarked and used for the purpose for which it is intended. Income and use of this income is subject to verification requirements under section 256P.04;

(x) retirement benefits;

(xi) cash assistance benefits, as defined by each program in chapters 119B, 256D, 256I, and 256J;

(xii) tribal per capita payments unless excluded by federal and state law;

(xiii) income and payments from service and rehabilitation programs that meet or exceed the state's minimum wage rate;

(xiv) income from members of the United States armed forces unless excluded from income taxes according to federal or state law;

(xv) all child support payments for programs under chapters 119B, 256D, and 256I;

(xvi) the amount of deleted text begin currentdeleted text end child support received that exceeds $100 for assistance units with one child and $200 for assistance units with two or more children for programs under chapter 256J; and

(xvii) spousal support.

Sec. 6.

new text begin [260C.125] CASE TRANSFER PROCESS. new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin This section pertains to the transfer of responsibility for the placement and care of an Indian child in out-of-home placement from the responsible social services agency to a tribal title IV-E agency or an Indian tribe in and outside of Minnesota with a title IV-E agreement. new text end

new text begin Subd. 2. new text end

new text begin Establishment of transfer procedures. new text end

new text begin The responsible social services agency shall establish and maintain procedures, in consultation with Indian tribes, for the transfer of responsibility for placement and care of a child to a tribal agency. Transfer of a child's case under this section shall not affect the child's title IV-E and Medicaid eligibility. new text end

new text begin Subd. 3. new text end

new text begin Title IV-E eligibility. new text end

new text begin If a child's title IV-E eligibility has not been determined by the responsible social services agency by the time of transfer, it shall be established at the time of the transfer by the responsible social services agency. new text end

new text begin Subd. 4. new text end

new text begin Documentation and information. new text end

new text begin Essential documents and information shall be transferred to a tribal agency, including but not limited to: new text end

new text begin (1) district court judicial determinations to the effect that continuation in the home from which the child was removed would be contrary to the welfare of the child and that reasonable efforts were made to ensure placement prevention and family reunification pursuant to section 260.012; new text end

new text begin (2) documentation related to the child's permanency proceeding under sections 260C.503 to 260C.521; new text end

new text begin (3) documentation from the responsible social services agency related to the child's title IV-E eligibility; new text end

new text begin (4) documentation regarding the child's eligibility or potential eligibility for other federal benefits; new text end

new text begin (5) the child's case plan, developed pursuant to the Social Security Act, United States Code, title 42, sections 675(1) and 675a, including health and education records of the child pursuant to the Social Security Act, United States Code, title 42, section 675(1)(c); and section 260C.212, subdivision 1, and information; and new text end

new text begin (6) documentation of the child's placement setting, including a copy of the most recent provider's license. new text end

Sec. 7.

Minnesota Statutes 2015 Supplement, section 260C.203, is amended to read:

260C.203 ADMINISTRATIVE OR COURT REVIEW OF PLACEMENTS.

(a) Unless the court is conducting the reviews required under section 260C.202, there shall be an administrative review of the out-of-home placement plan of each child placed in foster care no later than 180 days after the initial placement of the child in foster care and at least every six months thereafter if the child is not returned to the home of the parent or parents within that time. The out-of-home placement plan must be monitored and updated at each administrative review. The administrative review shall be conducted by the responsible social services agency using a panel of appropriate persons at least one of whom is not responsible for the case management of, or the delivery of services to, either the child or the parents who are the subject of the review. The administrative review shall be open to participation by the parent or guardian of the child and the child, as appropriate.

(b) As an alternative to the administrative review required in paragraph (a), the court may, as part of any hearing required under the Minnesota Rules of Juvenile Protection Procedure, conduct a hearing to monitor and update the out-of-home placement plan pursuant to the procedure and standard in section 260C.201, subdivision 6, paragraph (d). The party requesting review of the out-of-home placement plan shall give parties to the proceeding notice of the request to review and update the out-of-home placement plan. A court review conducted pursuant to section 260C.141, subdivision 2; 260C.193; 260C.201, subdivision 1; 260C.202; 260C.204; 260C.317; or 260D.06 shall satisfy the requirement for the review so long as the other requirements of this section are met.

(c) As appropriate to the stage of the proceedings and relevant court orders, the responsible social services agency or the court shall review:

(1) the safety, permanency needs, and well-being of the child;

(2) the continuing necessity for and appropriateness of the placement;

(3) the extent of compliance with the out-of-home placement plan;

(4) the extent of progress that has been made toward alleviating or mitigating the causes necessitating placement in foster care;

(5) the projected date by which the child may be returned to and safely maintained in the home or placed permanently away from the care of the parent or parents or guardian; and

(6) the appropriateness of the services provided to the child.

(d) When a child is age 14 or olderdeleted text begin ,deleted text end new text begin :new text end

new text begin (1)new text end in addition to any administrative review conducted by the new text begin responsible social services new text end agency, at the in-court review required under section 260C.317, subdivision 3, clause (3), or 260C.515, subdivision 5 or 6, the court shall review the independent living plan required under section 260C.212, subdivision 1, paragraph (c), clause (12), and the provision of services to the child related to the well-being of the child as the child prepares to leave foster care. The review shall include the actual plans related to each item in the plan necessary to the child's future safety and well-being when the child is no longer in foster caredeleted text begin .deleted text end new text begin ; andnew text end

deleted text begin (e) At the court review required under paragraph (d) for a child age 14 or older, the following procedures apply: deleted text end

deleted text begin (1) six months before the child is expected to be discharged from foster care, the responsible social services agency shall give the written notice required under section 260C.451, subdivision 1, regarding the right to continued access to services for certain children in foster care past age 18 and of the right to appeal a denial of social services under section 256.045. The agency shall file a copy of the notice, including the right to appeal a denial of social services, with the court. If the agency does not file the notice by the time the child is age 17-1/2, the court shall require the agency to give it; deleted text end

(2) consistent with the requirements of the independent living plan, the court shall review progress toward or accomplishment of the following goals:

(i) the child has obtained a high school diploma or its equivalent;

(ii) the child has completed a driver's education course or has demonstrated the ability to use public transportation in the child's community;

(iii) the child is employed or enrolled in postsecondary education;

(iv) the child has applied for and obtained postsecondary education financial aid for which the child is eligible;

(v) the child has health care coverage and health care providers to meet the child's physical and mental health needs;

(vi) the child has applied for and obtained disability income assistance for which the child is eligible;

(vii) the child has obtained affordable housing with necessary supports, which does not include a homeless shelter;

(viii) the child has saved sufficient funds to pay for the first month's rent and a damage deposit;

(ix) the child has an alternative affordable housing plan, which does not include a homeless shelter, if the original housing plan is unworkable;

(x) the child, if male, has registered for the Selective Service; and

(xi) the child has a permanent connection to a caring adultdeleted text begin ; anddeleted text end new text begin .new text end

deleted text begin (3) the court shall ensure that the responsible agency in conjunction with the placement provider assists the child in obtaining the following documents prior to the child's leaving foster care: a Social Security card; the child's birth certificate; a state identification card or driver's license, tribal enrollment identification card, green card, or school visa; the child's school, medical, and dental records; a contact list of the child's medical, dental, and mental health providers; and contact information for the child's siblings, if the siblings are in foster care. deleted text end

deleted text begin (f) For a child who will be discharged from foster care at age 18 or older, the responsible social services agency is required to develop a personalized transition plan as directed by the youth. The transition plan must be developed during the 90-day period immediately prior to the expected date of discharge. The transition plan must be as detailed as the child may elect and include specific options on housing, health insurance, education, local opportunities for mentors and continuing support services, and work force supports and employment services. The agency shall ensure that the youth receives, at no cost to the youth, a copy of the youth's consumer credit report as defined in section 13C.001 and assistance in interpreting and resolving any inaccuracies in the report. The plan must include information on the importance of designating another individual to make health care treatment decisions on behalf of the child if the child becomes unable to participate in these decisions and the child does not have, or does not want, a relative who would otherwise be authorized to make these decisions. The plan must provide the child with the option to execute a health care directive as provided under chapter 145C. The agency shall also provide the youth with appropriate contact information if the youth needs more information or needs help dealing with a crisis situation through age 21. deleted text end

Sec. 8.

Minnesota Statutes 2015 Supplement, section 260C.212, subdivision 1, is amended to read:

Subdivision 1.

Out-of-home placement; plan.

(a) An out-of-home placement plan shall be prepared within 30 days after any child is placed in foster care by court order or a voluntary placement agreement between the responsible social services agency and the child's parent pursuant to section 260C.227 or chapter 260D.

(b) An out-of-home placement plan means a written document which is prepared by the responsible social services agency jointly with the parent or parents or guardian of the child and in consultation with the child's guardian ad litem, the child's tribe, if the child is an Indian child, the child's foster parent or representative of the foster care facility, and, where appropriate, the child. When a child is age 14 or older, the child may include two other individuals on the team preparing the child's out-of-home placement plan.new text begin The child may select one member of the case planning team to be designated as the child's advisor and to advocate with respect to the application of the reasonable and prudent parenting standards. The responsible social services agency may reject an individual selected by the child if the agency has good cause to believe that the individual would not act in the best interest of the child. new text end For a child in voluntary foster care for treatment under chapter 260D, preparation of the out-of-home placement plan shall additionally include the child's mental health treatment provider. new text begin For a child 18 years of age or older, the responsible social services agency shall involve the child and the child's parents as appropriate. new text end As appropriate, the plan shall be:

(1) submitted to the court for approval under section 260C.178, subdivision 7;

(2) ordered by the court, either as presented or modified after hearing, under section 260C.178, subdivision 7, or 260C.201, subdivision 6; and

(3) signed by the parent or parents or guardian of the child, the child's guardian ad litem, a representative of the child's tribe, the responsible social services agency, and, if possible, the child.

(c) The out-of-home placement plan shall be explained to all persons involved in its implementation, including the child who has signed the plan, and shall set forth:

(1) a description of the foster care home or facility selected, including how the out-of-home placement plan is designed to achieve a safe placement for the child in the least restrictive, most family-like, setting available which is in close proximity to the home of the parent or parents or guardian of the child when the case plan goal is reunification, and how the placement is consistent with the best interests and special needs of the child according to the factors under subdivision 2, paragraph (b);

(2) the specific reasons for the placement of the child in foster care, and when reunification is the plan, a description of the problems or conditions in the home of the parent or parents which necessitated removal of the child from home and the changes the parent or parents must make deleted text begin in orderdeleted text end for the child to safely return home;

(3) a description of the services offered and provided to prevent removal of the child from the home and to reunify the family including:

(i) the specific actions to be taken by the parent or parents of the child to eliminate or correct the problems or conditions identified in clause (2), and the time period during which the actions are to be taken; and

(ii) the reasonable efforts, or in the case of an Indian child, active efforts to be made to achieve a safe and stable home for the child including social and other supportive services to be provided or offered to the parent or parents or guardian of the child, the child, and the residential facility during the period the child is in the residential facility;

(4) a description of any services or resources that were requested by the child or the child's parent, guardian, foster parent, or custodian since the date of the child's placement in the residential facility, and whether those services or resources were provided and if not, the basis for the denial of the services or resources;

(5) the visitation plan for the parent or parents or guardian, other relatives as defined in section 260C.007, subdivision 26b or 27, and siblings of the child if the siblings are not placed together in foster care, and whether visitation is consistent with the best interest of the child, during the period the child is in foster care;

(6) when a child cannot return to or be in the care of either parent, documentation of steps to finalize adoption as the permanency plan for the child through reasonable efforts to place the child for adoption. At a minimum, the documentation must include consideration of whether adoption is in the best interests of the child, child-specific recruitment efforts such as relative search and the use of state, regional, and national adoption exchanges to facilitate orderly and timely placements in and outside of the state. A copy of this documentation shall be provided to the court in the review required under section 260C.317, subdivision 3, paragraph (b);

(7) when a child cannot return to or be in the care of either parent, documentation of steps to finalize the transfer of permanent legal and physical custody to a relative as the permanency plan for the child. This documentation must support the requirements of the kinship placement agreement under section 256N.22 and must include the reasonable efforts used to determine that it is not appropriate for the child to return home or be adopted, and reasons why permanent placement with a relative through a Northstar kinship assistance arrangement is in the child's best interest; how the child meets the eligibility requirements for Northstar kinship assistance payments; agency efforts to discuss adoption with the child's relative foster parent and reasons why the relative foster parent chose not to pursue adoption, if applicable; and agency efforts to discuss with the child's parent or parents the permanent transfer of permanent legal and physical custody or the reasons why these efforts were not made;

(8) efforts to ensure the child's educational stability while in foster caredeleted text begin , including deleted text end new text begin for a child who attained the minimum age for compulsory school attendance under state law and is enrolled full time in elementary or secondary school, or instructed in elementary or secondary education at home, or instructed in an independent study elementary or secondary program, or incapable of attending school on a full-time basis due to a medical condition that is documented and supported by regularly updated information in the child's case plan. Educational stability efforts includenew text end :

(i) efforts to ensure that the child remains in the same school in which the child was enrolled prior to placement or upon the child's move from one placement to another, including efforts to work with the local education authorities to ensure the child's educational stabilitynew text begin and attendancenew text end ; or

(ii) if it is not in the child's best interest to remain in the same school that the child was enrolled in prior to placement or move from one placement to another, efforts to ensure immediate and appropriate enrollment for the child in a new school;

(9) the educational records of the child including the most recent information available regarding:

(i) the names and addresses of the child's educational providers;

(ii) the child's grade level performance;

(iii) the child's school record;

(iv) a statement about how the child's placement in foster care takes into account proximity to the school in which the child is enrolled at the time of placement; and

(v) any other relevant educational information;

(10) the efforts by the deleted text begin localdeleted text end new text begin responsible social servicesnew text end agency to ensure the oversight and continuity of health care services for the foster child, including:

(i) the plan to schedule the child's initial health screens;

(ii) how the child's known medical problems and identified needs from the screens, including any known communicable diseases, as defined in section 144.4172, subdivision 2, deleted text begin willdeleted text end new text begin shall new text end be monitored and treated while the child is in foster care;

(iii) how the child's medical information deleted text begin willdeleted text end new text begin shall new text end be updated and shared, including the child's immunizations;

(iv) who is responsible to coordinate and respond to the child's health care needs, including the role of the parent, the agency, and the foster parent;

(v) who is responsible for oversight of the child's prescription medications;

(vi) how physicians or other appropriate medical and nonmedical professionals deleted text begin will deleted text end new text begin shall new text end be consulted and involved in assessing the health and well-being of the child and determine the appropriate medical treatment for the child; and

(vii) the responsibility to ensure that the child has access to medical care through either medical insurance or medical assistance;

(11) the health records of the child including information available regarding:

(i) the names and addresses of the child's health care and dental care providers;

(ii) a record of the child's immunizations;

(iii) the child's known medical problems, including any known communicable diseases as defined in section 144.4172, subdivision 2;

(iv) the child's medications; and

(v) any other relevant health care information such as the child's eligibility for medical insurance or medical assistance;

(12) an independent living plan for a child deleted text begin agedeleted text end 14 new text begin years of age new text end or oldernew text begin , developed in consultation with the child. The child may select one member of the case planning team to be designated as the child's advisor and to advocate with respect to the application of the reasonable and prudent parenting standards in subdivision 14new text end . The plan should include, but not be limited to, the following objectives:

(i) educational, vocational, or employment planning;

(ii) health care planning and medical coverage;

(iii) transportation including, where appropriate, assisting the child in obtaining a driver's license;

(iv) money management, including the responsibility of the new text begin responsible social services new text end agency to ensure that the deleted text begin youthdeleted text end new text begin child new text end annually receives, at no cost to the deleted text begin youthdeleted text end new text begin childnew text end , a consumer report as defined under section 13C.001 and assistance in interpreting and resolving any inaccuracies in the report;

(v) planning for housing;

(vi) social and recreational skills;

(vii) establishing and maintaining connections with the child's family and community; and

(viii) regular opportunities to engage in age-appropriate or developmentally appropriate activities typical for the child's age group, taking into consideration the capacities of the individual child; deleted text begin anddeleted text end

(13) for a child in voluntary foster care for treatment under chapter 260D, diagnostic and assessment information, specific services relating to meeting the mental health care needs of the child, and treatment outcomesdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (14) for a child 14 years of age or older, a signed acknowledgment that describes the child's rights regarding education, health care, visitation, safety and protection from exploitation, and court participation; receipt of the documents identified in section 260C.452; and receipt of an annual credit report. The acknowledgment shall state that the rights were explained in an age-appropriate manner to the child. new text end

(d) The parent or parents or guardian and the child each shall have the right to legal counsel in the preparation of the case plan and shall be informed of the right at the time of placement of the child. The child shall also have the right to a guardian ad litem. If unable to employ counsel from their own resources, the court shall appoint counsel upon the request of the parent or parents or the child or the child's legal guardian. The parent or parents may also receive assistance from any person or social services agency in preparation of the case plan.

After the plan has been agreed upon by the parties involved or approved or ordered by the court, the foster parents shall be fully informed of the provisions of the case plan and shall be provided a copy of the plan.

Upon discharge from foster care, the parent, adoptive parent, or permanent legal and physical custodian, as appropriate, and the child, if appropriate, must be provided with a current copy of the child's health and education record.

Sec. 9.

Minnesota Statutes 2015 Supplement, section 260C.212, subdivision 14, is amended to read:

Subd. 14.

Support age-appropriate and developmentally appropriate activities for foster children.

new text begin (a) new text end Responsible social services agencies and new text begin licensed new text end child-placing agencies shall support a foster child's emotional and developmental growth by permitting the child to participate in activities or events that are generally accepted as suitable for children of the same chronological age or are developmentally appropriate for the child. new text begin "Developmentally appropriate" means based on a child's cognitive, emotional, physical, and behavioral capacities that are typical for an age or age group.new text end Foster parents and residential facility staff are permitted to allow foster children to participate in extracurricular, social, or cultural activities that are typical for the child's age by applying reasonable and prudent parenting standards.

new text begin (b) "new text end Reasonable and prudent parentingnew text begin " means thenew text end standards deleted text begin aredeleted text end characterized by careful and sensible parenting decisions that maintain the child's health and safety, new text begin cultural, religious, new text end and deleted text begin are made in the child'sdeleted text end new text begin tribal values, and new text end best deleted text begin interestdeleted text end new text begin interests while encouraging the child's emotional and developmental growthnew text end .

new text begin (c) The commissioner shall provide guidance about the childhood activities and factors a foster parent and authorized residential facility staff must consider when applying the reasonable and prudent parenting standards. The factors must include the: new text end

new text begin (1) child's age, maturity, and developmental level; new text end

new text begin (2) risk of activity; new text end

new text begin (3) best interests of the child; new text end

new text begin (4) importance of the experience in the child's emotional and developmental growth; new text end

new text begin (5) importance of a family-like experience; new text end

new text begin (6) behavioral history of the child; and new text end

new text begin (7) wishes of the child's parent or legal guardian, as appropriate. new text end

new text begin (d) A residential facility licensed under Minnesota Rules, chapter 2960, must have at least one onsite staff person who is trained on the standards according to section 260C.215, subdivision 4, and authorized to apply the reasonable and prudent parenting standards to decisions involving the approval of a foster child's participation in age and developmentally appropriate extracurricular, social, or cultural activities. The onsite staff person referenced in this paragraph is not required to be available 24 hours per day. new text end

new text begin (e) The foster parent or designated staff at residential facilities demonstrating compliance with the reasonable and prudent parenting standards shall not incur civil liability if a foster child is harmed or injured because of participating in approved extracurricular, enrichment, cultural, and social activities. new text end

Sec. 10.

Minnesota Statutes 2015 Supplement, section 260C.215, subdivision 4, is amended to read:

Subd. 4.

Duties of commissioner.

The commissioner of human services shall:

(1) provide practice guidance to responsible social services agencies and new text begin licensed new text end child-placing agencies that reflect federal and state laws and policy direction on placement of children;

(2) develop criteria for determining whether a prospective adoptive or foster family has the ability to understand and validate the child's cultural background;

(3) provide a standardized training curriculum for adoption and foster care workers and administrators who work with children. Training must address the following objectives:

(i) developing and maintaining sensitivity to all cultures;

(ii) assessing values and their cultural implications;

(iii) making individualized placement decisions that advance the best interests of a particular child under section 260C.212, subdivision 2; and

(iv) issues related to cross-cultural placement;

(4) provide a training curriculum for all prospective adoptive and foster families that prepares them to care for the needs of adoptive and foster children taking into consideration the needs of children outlined in section 260C.212, subdivision 2, paragraph (b)new text begin , and, as necessary, preparation is continued after placement of the child and includes the knowledge and skills related to reasonable and prudent parenting standards for the participation of the child in age or developmentally appropriate activities, according to section 260C.212, subdivision 14new text end ;

(5) develop and provide to new text begin responsible social services new text end agencies new text begin and licensed child-placing agencies new text end a home study format to assess the capacities and needs of prospective adoptive and foster families. The format must address problem-solving skills; parenting skills; evaluate the degree to which the prospective family has the ability to understand and validate the child's cultural background, and other issues needed to provide sufficient information for agencies to make an individualized placement decision consistent with section 260C.212, subdivision 2. For a study of a prospective foster parent, the format must also address the capacity of the prospective foster parent to provide a safe, healthy, smoke-free home environment. If a prospective adoptive parent has also been a foster parent, any update necessary to a home study for the purpose of adoption may be completed by the licensing authority responsible for the foster parent's license. If a prospective adoptive parent with an approved adoptive home study also applies for a foster care license, the license application may be made with the same agency which provided the adoptive home study; and

(6) consult with representatives reflecting diverse populations from the councils established under sections 3.922 and 15.0145, and other state, local, and community organizations.

Sec. 11.

Minnesota Statutes 2015 Supplement, section 260C.451, subdivision 6, is amended to read:

Subd. 6.

Reentering foster care and accessing services after deleted text begin agedeleted text end 18new text begin years of age and up to 21 years of agenew text end .

(a) Upon request of an individual deleted text begin between the ages of 18 and 21deleted text end who had been under the guardianship of the commissioner and who has left foster care without being adopted, the responsible social services agency which had been the commissioner's agent for purposes of the guardianship shall develop with the individual a plan to increase the individual's ability to live safely and independently using the plan requirements of section 260C.212, subdivision 1, paragraph (c), clause (12), and to assist the individual to meet one or more of the eligibility criteria in subdivision 4 if the individual wants to reenter foster care. The new text begin responsible social services new text end agency shall provide foster care as required to implement the plan. The new text begin responsible social services new text end agency shall enter into a voluntary placement agreement under section 260C.229 with the individual if the plan includes foster care.

(b) Individuals who had not been under the guardianship of the commissioner of human services prior to new text begin 18 years of new text end age deleted text begin 18 and are between the ages of 18 and 21deleted text end may ask to reenter foster care after age 18 and, to the extent funds are available, the responsible social services agency that had responsibility for planning for the individual before discharge from foster care may provide foster care or other services to the individual for the purpose of increasing the individual's ability to live safely and independently and to meet the eligibility criteria in subdivision 3a, if the individual:

(1) was in foster care for the six consecutive months prior to the person's 18th birthday and was not discharged home, adopted, or received into a relative's home under a transfer of permanent legal and physical custody under section 260C.515, subdivision 4; or

(2) was discharged from foster care while on runaway status after age 15.

(c) In conjunction with a qualifying and eligible individual under paragraph (b) and other appropriate persons, the responsible social services agency shall develop a specific plan related to that individual's vocational, educational, social, or maturational needs and, to the extent funds are available, provide foster care as required to implement the plan. The new text begin responsible social services new text end agency shall enter into a voluntary placement agreement with the individual if the plan includes foster care.

(d) deleted text begin Youthdeleted text end new text begin A child new text end who left foster care while under guardianship of the commissioner of human services deleted text begin retaindeleted text end new text begin retainsnew text end eligibility for foster care for placement at any time deleted text begin between the ages of 18 anddeleted text end new text begin prior to new text end 21new text begin years of agenew text end .

Sec. 12.

Minnesota Statutes 2014, section 260C.451, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Administrative or court review of placements. new text end

new text begin (a) The court shall conduct reviews at least annually to ensure the responsible social services agency is making reasonable efforts to finalize the permanency plan for the child. new text end

new text begin (b) The court shall find that the responsible social services agency is making reasonable efforts to finalize the permanency plan for the child when the responsible social services agency: new text end

new text begin (1) provides appropriate support to the child and foster care provider to ensure continuing stability and success in placement; new text end

new text begin (2) works with the child to plan for transition to adulthood and assists the child in demonstrating progress in achieving related goals; new text end

new text begin (3) works with the child to plan for independent living skills and assists the child in demonstrating progress in achieving independent living goals; and new text end

new text begin (4) prepares the child for independence according to sections 260C.203, paragraph (d), and 260C.452, subdivision 4. new text end

new text begin (c) The responsible social services agency must ensure that an administrative review that meets the requirements of this section and section 260C.203 is completed at least six months after each of the court's annual reviews. new text end

Sec. 13.

new text begin [260C.452] SUCCESSFUL TRANSITION TO ADULTHOOD. new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin This section pertains to a child who is under the guardianship of the commissioner of human services, or who has a permanency disposition of permanent custody to the agency, or who will leave foster care at 18 to 21 years of age. new text end

new text begin Subd. 2. new text end

new text begin Independent living plan. new text end

new text begin When the child is 14 years of age or older, the responsible social services agency, in consultation with the child, shall complete the independent living plan according to section 260C.212, subdivision 1, paragraph (c), clause (12). new text end

new text begin Subd. 3. new text end

new text begin Notification. new text end

new text begin Six months before the child is expected to be discharged from foster care, the responsible social services agency shall provide written notice to the child regarding the right to continued access to services for certain children in foster care past 18 years of age and of the right to appeal a denial of social services under section 256.045. new text end

new text begin Subd. 4. new text end

new text begin Administrative or court review of placements. new text end

new text begin (a) When the child is 14 years of age or older, the court, in consultation with the child, shall review the independent living plan according to section 260C.203, paragraph (d). new text end

new text begin (b) The responsible social services agency shall file a copy of the notification required in subdivision 3 with the court. If the responsible social services agency does not file the notice by the time the child is 17-1/2 years of age, the court shall require the responsible social services agency to file the notice. new text end

new text begin (c) The court shall ensure that the responsible social services agency assists the child in obtaining the following documents before the child leaves foster care: a Social Security card; an official or certified copy of the child's birth certificate; a state identification card or driver's license, tribal enrollment identification card, green card, or school visa; health insurance information; the child's school, medical, and dental records; a contact list of the child's medical, dental, and mental health providers; and contact information for the child's siblings, if the siblings are in foster care. new text end

new text begin (d) For a child who will be discharged from foster care at 18 years of age or older, the responsible social services agency must develop a personalized transition plan as directed by the child during the 90-day period immediately prior to the expected date of discharge. The transition plan must be as detailed as the child elects and include specific options, including but not limited to: new text end

new text begin (1) affordable housing with necessary supports that does not include a homeless shelter; new text end

new text begin (2) health insurance, including eligibility for medical assistance as defined in section 256B.055, subdivision 17; new text end

new text begin (3) education, including application to the Education and Training Voucher Program; new text end

new text begin (4) local opportunities for mentors and continuing support services, including the Healthy Transitions and Homeless Prevention program, if available; new text end

new text begin (5) workforce supports and employment services; new text end

new text begin (6) a copy of the child's consumer credit report as defined in section 13C.001 and assistance in interpreting and resolving any inaccuracies in the report, at no cost to the child; new text end

new text begin (7) information on executing a health care directive under chapter 145C and on the importance of designating another individual to make health care decisions on behalf of the child if the child becomes unable to participate in decisions; and new text end

new text begin (8) appropriate contact information through 21 years of age if the child needs information or help dealing with a crisis situation. new text end

new text begin Subd. 5. new text end

new text begin Notice of termination of foster care. new text end

new text begin (a) When a child leaves foster care at 18 years of age or older, the responsible social services agency shall give the child written notice that foster care shall terminate 30 days from the date the notice is sent. new text end

new text begin (b) The child or the child's guardian ad litem may file a motion asking the court to review the responsible social services agency's determination within 15 days of receiving the notice. The child shall not be discharged from foster care until the motion is heard. The responsible social services agency shall work with the child to transition out of foster care. new text end

new text begin (c) The written notice of termination of benefits shall be on a form prescribed by the commissioner and shall give notice of the right to have the responsible social services agency's determination reviewed by the court under this section or sections 260C.203, 260C.317, and 260C.515, subdivision 5 or 6. A copy of the termination notice shall be sent to the child and the child's attorney, if any, the foster care provider, the child's guardian ad litem, and the court. The responsible social services agency is not responsible for paying foster care benefits for any period of time after the child leaves foster care. new text end

Sec. 14.

Minnesota Statutes 2015 Supplement, section 260C.521, subdivision 1, is amended to read:

Subdivision 1.

Child in permanent custody of responsible social services agency.

(a) Court reviews of an order for permanent custody to the responsible social services agency for placement of the child in foster care must be conducted at least yearly at an in-court appearance hearing.

(b) The purpose of the review hearing is to ensure:

(1) the new text begin responsible social services agency made intensive, ongoing, and, as of the date of the hearing, unsuccessful efforts to return the child home or secure a placement for the child with a fit and willing relative, custodian, or adoptive parent, and an new text end order for permanent custody to the responsible social services agency for placement of the child in foster care continues to be in the best interests of the child deleted text begin and that no other permanency disposition order is in the best interests of the childdeleted text end ;

(2) that the new text begin responsible social services new text end agency is assisting the child to build connections to the child's family and community; deleted text begin anddeleted text end

(3) that the new text begin responsible social services new text end agency is appropriately planning with the child for development of independent living skills for the child and, as appropriate, for the orderly and successful transition to deleted text begin independent livingdeleted text end new text begin adulthoodnew text end that may occur if the child continues in foster care without another permanency disposition orderdeleted text begin .deleted text end new text begin ;new text end

new text begin (4) the child's foster family home or child care institution is following the reasonable and prudent parenting standards; and new text end

new text begin (5) the child has regular, ongoing opportunities to engage in age or developmentally appropriate activities by consulting with the child in an age-appropriate manner about the opportunities. new text end

(c) The court must review the child's out-of-home placement plan and the reasonable efforts of the new text begin responsible social services new text end agency to finalize an alternative permanent plan for the child including the new text begin responsible social services new text end agency's efforts to:

(1) ensure that permanent custody to the new text begin responsible social services new text end agency with placement of the child in foster care continues to be the most appropriate legal arrangement for meeting the child's need for permanency and stability deleted text begin or, if not, to identify and attempt to finalize another permanency disposition order under this chapter that would better serve the child's needs and best interests;deleted text end new text begin by reviewing the compelling reasons it continues not to be in the best interest of the child to:new text end

new text begin (i) return home; new text end

new text begin (ii) be placed for adoption; or new text end

new text begin (iii) be placed with a fit and willing relative through an order for permanent legal and physical custody under section 260C.515, subdivision 4; new text end

(2) identify a specific foster home for the child, if one has not already been identified;

(3) support continued placement of the child in the identified home, if one has been identified;

(4) ensure appropriate services are provided to address the physical health, mental health, and educational needs of the child during the period of foster care and also ensure appropriate services or assistance to maintain relationships with appropriate family members and the child's community; and

(5) plan for the child's independence upon the child's leaving foster care living as required under section 260C.212, subdivision 1.

(d) The court may find that the new text begin responsible social services new text end agency has made reasonable efforts to finalize the permanent plan for the child when:

(1) the new text begin responsible social services new text end agency has made reasonable efforts to identify a more legally permanent home for the child than is provided by an order for permanent custody to the agency for placement in foster care;

(2) the child has been asked about the child's desired permanency outcome; and

(3) the new text begin responsible social services new text end agency's engagement of the child in planning for deleted text begin independent livingdeleted text end new text begin a successful transition to adulthoodnew text end is reasonable and appropriate.

Sec. 15.

new text begin [260D.14] SUCCESSFUL TRANSITION TO ADULTHOOD FOR CHILDREN IN VOLUNTARY PLACEMENT. new text end

new text begin Subdivision 1. new text end

new text begin Case planning. new text end

new text begin When the child is 14 years of age or older, the responsible social services agency shall ensure a child in foster care under this chapter is provided with the case plan requirements in section 260C.212, subdivisions 1 and 14. new text end

new text begin Subd. 2. new text end

new text begin Notification. new text end

new text begin The responsible social services agency shall provide written notice of the right to continued access to services for certain children in foster care past 18 years of age under section 260C.452, subdivision 3, and of the right to appeal a denial of social services under section 256.045. The notice must be provided to the child six months before the child's 18th birthday. new text end

new text begin Subd. 3. new text end

new text begin Administrative or court reviews. new text end

new text begin When the child is 17 years of age or older, the administrative review or court hearing must include a review of the responsible social services agency's support for the child's successful transition to adulthood as required in section 260C.452, subdivision 4. new text end

Sec. 16.

Minnesota Statutes 2014, section 518.175, subdivision 5, is amended to read:

Subd. 5.

Modification of parenting plan or order for parenting time.

(a) new text begin If a parenting plan or an order granting parenting time cannot be used to determine the number of overnights or overnight equivalents the child has with each parent, the court shall modify the parenting plan or order granting parenting time so that the number of overnights or overnight equivalents the child has with each parent can be determined. For purposes of this section, "overnight equivalents" has the meaning given in section 518A.36, subdivision 1.new text end

new text begin (b) new text end If modification would serve the best interests of the child, the court shall modify the decision-making provisions of a parenting plan or an order granting or denying parenting time, if the modification would not change the child's primary residence. Consideration of a child's best interest includes a child's changing developmental needs.

deleted text begin (b)deleted text end new text begin (c)new text end Except as provided in section 631.52, the court may not restrict parenting time unless it finds that:

(1) parenting time is likely to endanger the child's physical or emotional health or impair the child's emotional development; or

(2) the parent has chronically and unreasonably failed to comply with court-ordered parenting time.

A modification of parenting time which increases a parent's percentage of parenting time to an amount that is between 45.1 to 54.9 percent parenting time is not a restriction of the other parent's parenting time.

deleted text begin (c)deleted text end new text begin (d)new text end If a parent makes specific allegations that parenting time by the other parent places the parent or child in danger of harm, the court shall hold a hearing at the earliest possible time to determine the need to modify the order granting parenting time. Consistent with subdivision 1a, the court may require a third party, including the local social services agency, to supervise the parenting time or may restrict a parent's parenting time if necessary to protect the other parent or child from harm. If there is an existing order for protection governing the parties, the court shall consider the use of an independent, neutral exchange location for parenting time.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018. new text end

Sec. 17.

Minnesota Statutes 2015 Supplement, section 518A.26, subdivision 14, is amended to read:

Subd. 14.

Obligor.

"Obligor" means a person obligated to pay maintenance or support. For purposes of ordering medical support under section 518A.41, a parent who has primary physical custody of a child may be an obligor subject to a payment agreement under section 518A.69.new text begin If a parent has more than 55 percent court-ordered parenting time, there is a rebuttable presumption that the parent has a zero dollar basic support obligation. A party seeking to overcome this presumption must show, and the court must consider, the following:new text end

new text begin (1) a significant income disparity, which may include potential income determined under section 518A.32; new text end

new text begin (2) the benefit and detriment to the child and the ability of each parent to meet the needs of the child; and new text end

new text begin (3) whether the application of the presumption would have an unjust or inappropriate result. new text end

new text begin The presumption of a zero dollar basic support obligation does not eliminate a parent's obligation to pay child support arrears under section 518A.60. The presumption of a zero dollar basic support obligation does not apply to an action under section 256.87, subdivision 1 or 1a. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018. new text end

Sec. 18.

Minnesota Statutes 2014, section 518A.34, is amended to read:

518A.34 COMPUTATION OF CHILD SUPPORT OBLIGATIONS.

(a) To determine the presumptive child support obligation of a parent, the court shall follow the procedure set forth in this section.

(b) To determine the obligor's basic support obligation, the court shall:

(1) determine the gross income of each parent under section 518A.29;

(2) calculate the parental income for determining child support (PICS) of each parent, by subtracting from the gross income the credit, if any, for each parent's nonjoint children under section 518A.33;

(3) determine the percentage contribution of each parent to the combined PICS by dividing the combined PICS into each parent's PICS;

(4) determine the combined basic support obligation by application of the guidelines in section 518A.35;

(5) determine deleted text begin the obligor'sdeleted text end new text begin each parent'snew text end share of the new text begin combinednew text end basic support obligation by multiplying the percentage figure from clause (3) by the combined basic support obligation in clause (4); and

(6) deleted text begin determine the parenting expense adjustment, if any, asdeleted text end new text begin apply the parenting expense adjustment formula new text end provided in section 518A.36deleted text begin , and adjust the obligor's basic support obligation accordinglydeleted text end new text begin to determine the obligor's basic support obligationnew text end . deleted text begin If the parenting time of the parties is presumed equal, section 518A.36, subdivision 3, applies to the calculation of the basic support obligation and a determination of which parent is the obligor.deleted text end

(c) new text begin If the parents have split custody of joint children, child support must be calculated for each joint child as follows:new text end

new text begin (1) the court shall determine each parent's basic support obligation under paragraph (b) and include the amount of each parent's obligation in the court order. If the basic support calculation results in each parent owing support to the other, the court shall offset the higher basic support obligation with the lower basic support obligation to determine the amount to be paid by the parent with the higher obligation to the parent with the lower obligation. For the purpose of the cost-of-living adjustment required under section 518A.75, the adjustment must be based on each parent's basic support obligation prior to offset. For the purposes of this paragraph, "split custody" means that there are two or more joint children and each parent has at least one joint child more than 50 percent of the time; new text end

new text begin (2) if each parent pays all child care expenses for at least one joint child, the court shall calculate child care support for each joint child as provided in section 518A.40. The court shall determine each parent's child care support obligation and include the amount of each parent's obligation in the court order. If the child care support calculation results in each parent owing support to the other, the court shall offset the higher child care support obligation with the lower child care support obligation to determine the amount to be paid by the parent with the higher obligation to the parent with the lower obligation; and new text end

new text begin (3) if each parent pays all medical or dental insurance expenses for at least one joint child, medical support shall be calculated for each joint child as provided in section 518A.41. The court shall determine each parent's medical support obligation and include the amount of each parent's obligation in the court order. If the medical support calculation results in each parent owing support to the other, the court shall offset the higher medical support obligation with the lower medical support obligation to determine the amount to be paid by the parent with the higher obligation to the parent with the lower obligation. Unreimbursed and uninsured medical expenses are not included in the presumptive amount of support owed by a parent and are calculated and collected as provided in section 518A.41. new text end

new text begin (d) new text end The court shall determine the child care support obligation for the obligor as provided in section 518A.40.

deleted text begin (d)deleted text end new text begin (e)new text end The court shall determine the medical support obligation for each parent as provided in section 518A.41. Unreimbursed and uninsured medical expenses are not included in the presumptive amount of support owed by a parent and are calculated and collected as described in section 518A.41.

deleted text begin (e)deleted text end new text begin (f)new text end The court shall determine each parent's total child support obligation by adding together each parent's basic support, child care support, and health care coverage obligations as provided in this section.

deleted text begin (f)deleted text end new text begin (g)new text end If Social Security benefits or veterans' benefits are received by one parent as a representative payee for a joint child based on the other parent's eligibility, the court shall subtract the amount of benefits from the other parent's net child support obligation, if any.

deleted text begin (g)deleted text end new text begin (h)new text end The final child support order shall separately designate the amount owed for basic support, child care support, and medical support. If applicable, the court shall use the self-support adjustment and minimum support adjustment under section 518A.42 to determine the obligor's child support obligation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018. new text end

Sec. 19.

Minnesota Statutes 2014, section 518A.35, subdivision 1, is amended to read:

Subdivision 1.

Determination of support obligation.

(a) The guideline in this section is a rebuttable presumption and shall be used in any judicial or administrative proceeding to establish or modify a support obligation under this chapter.

(b) The basic child support obligation shall be determined by referencing the guideline for the appropriate number of joint children and the combined parental income for determining child support of the parents.

(c) If a child is not in the custody of either parent and a support order is sought against one or both parents, the basic child support obligation shall be determined by referencing the guideline for the appropriate number of joint children, and the parent's individual parental income for determining child support, not the combined parental incomes for determining child support of the parents.new text begin Unless a parent has court-ordered parenting time, the parenting expense adjustment formula under section 518A.34 must not be applied.new text end

(d) new text begin If a child is in custody of either parent and a support order is sought by the public authority under section 256.87, unless the parent against whom the support order is sought has court-ordered parenting time, the support obligation must be determined by referencing the guideline for the appropriate number of joint children and the parent's individual income without application of the parenting expense adjustment formula under section 518A.34.new text end

new text begin (e) new text end For combined parental incomes for determining child support exceeding $15,000 per month, the presumed basic child support obligations shall be as for parents with combined parental income for determining child support of $15,000 per month. A basic child support obligation in excess of this level may be demonstrated for those reasons set forth in section 518A.43.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018. new text end

Sec. 20.

Minnesota Statutes 2014, section 518A.36, is amended to read:

518A.36 PARENTING EXPENSE ADJUSTMENT.

Subdivision 1.

General.

(a) The parenting expense adjustment under this section reflects the presumption that while exercising parenting time, a parent is responsible for and incurs costs of caring for the child, including, but not limited to, food, new text begin clothing, new text end transportation, recreation, and household expenses. Every child support order shall specify the percentage of parenting time granted to or presumed for each parent. For purposes of this section, the percentage of parenting time means the percentage of time a child is scheduled to spend with the parent during a calendar year according to a court order new text begin averaged over a two-year periodnew text end . Parenting time includes time with the child whether it is designated as visitation, physical custody, or parenting time. The percentage of parenting time may be determined by calculating the number of overnights new text begin or overnight equivalentsnew text end that a deleted text begin childdeleted text end new text begin parentnew text end spends with a deleted text begin parent, ordeleted text end new text begin child pursuant to a court order. For purposes of this section, overnight equivalents are calculatednew text end by using a method other than overnights if the parent has significant time periods on separate days where the child is in the parent's physical custody and under the direct care of the parent but does not stay overnight. The court may consider the age of the child in determining whether a child is with a parent for a significant period of time.

(b) If there is not a court order awarding parenting time, the court shall determine the child support award without consideration of the parenting expense adjustment. If a parenting time order is subsequently issued or is issued in the same proceeding, then the child support order shall include application of the parenting expense adjustment.

Subd. 2.

Calculation of parenting expense adjustment.

deleted text begin The obligor is entitled to a parenting expense adjustment calculated as provided in this subdivision. The court shall: deleted text end

deleted text begin (1) find the adjustment percentage corresponding to the percentage of parenting time allowed to the obligor below: deleted text end

deleted text begin Percentage Range of Parenting Time deleted text end deleted text begin Adjustment Percentage deleted text end
deleted text begin (i) deleted text end deleted text begin less than 10 percent deleted text end deleted text begin no adjustment deleted text end
deleted text begin (ii) deleted text end deleted text begin 10 percent to 45 percent deleted text end deleted text begin 12 percent deleted text end
deleted text begin (iii) deleted text end deleted text begin 45.1 percent to 50 percent deleted text end deleted text begin presume parenting time is equal deleted text end

deleted text begin (2) multiply the adjustment percentage by the obligor's basic child support obligation to arrive at the parenting expense adjustment; and deleted text end

deleted text begin (3) subtract the parenting expense adjustment from the obligor's basic child support obligation. The result is the obligor's basic support obligation after parenting expense adjustment. deleted text end

new text begin (a) For the purposes of this section, the following terms have the meanings given: new text end

new text begin (1) "parent A" means the parent with whom the child or children will spend the least number of overnights under the court order; and new text end

new text begin (2) "parent B" means the parent with whom the child or children will spend the greatest number of overnights under the court order. new text end

new text begin (b) The court shall apply the following formula to determine which parent is the obligor and calculate the basic support obligation: new text end

new text begin (1) raise to the power of three the approximate number of annual overnights the child or children will likely spend with parent A; new text end

new text begin (2) raise to the power of three the approximate number of annual overnights the child or children will likely spend with parent B; new text end

new text begin (3) multiply the result of clause (1) times parent B's share of the combined basic support obligation as determined in section 518A.34, paragraph (b), clause (5); new text end

new text begin (4) multiply the result of clause (2) times parent A's share of the combined basic support obligation as determined in section 518A.34, paragraph (b), clause (5); new text end

new text begin (5) subtract the result of clause (4) from the result of clause (3); and new text end

new text begin (6) divide the result of clause (5) by the sum of clauses (1) and (2). new text end

new text begin (c) If the result is a negative number, parent A is the obligor, the negative number becomes its positive equivalent, and the result is the basic support obligation. If the result is a positive number, parent B is the obligor and the result is the basic support obligation. new text end

Subd. 3.

Calculation of basic support when parenting time deleted text begin presumeddeleted text end new text begin isnew text end equal.

deleted text begin (a)deleted text end If the parenting time is equal and the parental incomes for determining child support of the parents also are equal, no basic support shall be paid unless the court determines that the expenses for the child are not equally shared.

deleted text begin (b) If the parenting time is equal but the parents' parental incomes for determining child support are not equal, the parent having the greater parental income for determining child support shall be obligated for basic child support, calculated as follows: deleted text end

deleted text begin (1) multiply the combined basic support calculated under section 518A.34 by 0.75; deleted text end

deleted text begin (2) prorate the amount under clause (1) between the parents based on each parent's proportionate share of the combined PICS; and deleted text end

deleted text begin (3) subtract the lower amount from the higher amount. deleted text end

deleted text begin The resulting figure is the obligation after parenting expense adjustment for the parent with the greater parental income for determining child support. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018. new text end

Sec. 21.

Minnesota Statutes 2015 Supplement, section 518A.39, subdivision 2, is amended to read:

Subd. 2.

Modification.

(a) The terms of an order respecting maintenance or support may be modified upon a showing of one or more of the following, any of which makes the terms unreasonable and unfair: (1) substantially increased or decreased gross income of an obligor or obligee; (2) substantially increased or decreased need of an obligor or obligee or the child or children that are the subject of these proceedings; (3) receipt of assistance under the AFDC program formerly codified under sections 256.72 to 256.87 or 256B.01 to 256B.40, or chapter 256J or 256K; (4) a change in the cost of living for either party as measured by the Federal Bureau of Labor Statistics; (5) extraordinary medical expenses of the child not provided for under section 518A.41; (6) a change in the availability of appropriate health care coverage or a substantial increase or decrease in health care coverage costs; (7) the addition of work-related or education-related child care expenses of the obligee or a substantial increase or decrease in existing work-related or education-related child care expenses; or (8) upon the emancipation of the child, as provided in subdivision 5.

(b) It is presumed that there has been a substantial change in circumstances under paragraph (a) and the terms of a current support order shall be rebuttably presumed to be unreasonable and unfair if:

(1) the application of the child support guidelines in section 518A.35, to the current circumstances of the parties results in a calculated court order that is at least 20 percent and at least $75 per month higher or lower than the current support order or, if the current support order is less than $75, it results in a calculated court order that is at least 20 percent per month higher or lower;

(2) the medical support provisions of the order established under section 518A.41 are not enforceable by the public authority or the obligee;

(3) health coverage ordered under section 518A.41 is not available to the child for whom the order is established by the parent ordered to provide;

(4) the existing support obligation is in the form of a statement of percentage and not a specific dollar amount;

(5) the gross income of an obligor or obligee has decreased by at least 20 percent through no fault or choice of the party; or

(6) a deviation was granted based on the factor in section 518A.43, subdivision 1, clause (4), and the child no longer resides in a foreign country or the factor is otherwise no longer applicable.

(c) A child support order is not presumptively modifiable solely because an obligor or obligee becomes responsible for the support of an additional nonjoint child, which is born after an existing order. Section 518A.33 shall be considered if other grounds are alleged which allow a modification of support.

(d) new text begin If child support was established by applying a parenting expense adjustment or presumed equal parenting time calculation under previously existing child support guidelines and there is no parenting plan or order from which overnights or overnight equivalents can be determined, there is a rebuttable presumption that the established adjustment or calculation will continue after modification so long as the modification is not based on a change in parenting time. In determining an obligation under previously existing child support guidelines, it is presumed that the court shall:new text end

new text begin (1) if a 12 percent parenting expense adjustment was applied, multiply the obligor's share of the combined basic support obligation calculated under section 518A.34, paragraph (b), clause (5), by 0.88; or new text end

new text begin (2) if the parenting time was presumed equal but the parents' parental incomes for determining child support were not equal: new text end

new text begin (i) multiply the combined basic support obligation under section 518A.34, paragraph (b), clause (5), by 0.075; new text end

new text begin (ii) prorate the amount under item (i) between the parents based on each parent's proportionate share of the combined PICS; and new text end

new text begin (iii) subtract the lower amount from the higher amount. new text end

new text begin (e) new text end On a motion for modification of maintenance, including a motion for the extension of the duration of a maintenance award, the court shall apply, in addition to all other relevant factors, the factors for an award of maintenance under section 518.552 that exist at the time of the motion. On a motion for modification of support, the court:

(1) shall apply section 518A.35, and shall not consider the financial circumstances of each party's spouse, if any; and

(2) shall not consider compensation received by a party for employment in excess of a 40-hour work week, provided that the party demonstrates, and the court finds, that:

(i) the excess employment began after entry of the existing support order;

(ii) the excess employment is voluntary and not a condition of employment;

(iii) the excess employment is in the nature of additional, part-time employment, or overtime employment compensable by the hour or fractions of an hour;

(iv) the party's compensation structure has not been changed for the purpose of affecting a support or maintenance obligation;

(v) in the case of an obligor, current child support payments are at least equal to the guidelines amount based on income not excluded under this clause; and

(vi) in the case of an obligor who is in arrears in child support payments to the obligee, any net income from excess employment must be used to pay the arrearages until the arrearages are paid in full.

deleted text begin (e)deleted text end new text begin (f)new text end A modification of support or maintenance, including interest that accrued pursuant to section 548.091, may be made retroactive only with respect to any period during which the petitioning party has pending a motion for modification but only from the date of service of notice of the motion on the responding party and on the public authority if public assistance is being furnished or the county attorney is the attorney of record, unless the court adopts an alternative effective date under paragraph (l). The court's adoption of an alternative effective date under paragraph (l) shall not be considered a retroactive modification of maintenance or support.

deleted text begin (f)deleted text end new text begin (g)new text end Except for an award of the right of occupancy of the homestead, provided in section 518.63, all divisions of real and personal property provided by section 518.58 shall be final, and may be revoked or modified only where the court finds the existence of conditions that justify reopening a judgment under the laws of this state, including motions under section 518.145, subdivision 2. The court may impose a lien or charge on the divided property at any time while the property, or subsequently acquired property, is owned by the parties or either of them, for the payment of maintenance or support money, or may sequester the property as is provided by section 518A.71.

deleted text begin (g)deleted text end new text begin (h)new text end The court need not hold an evidentiary hearing on a motion for modification of maintenance or support.

deleted text begin (h)deleted text end new text begin (i)new text end Sections 518.14 and 518A.735 shall govern the award of attorney fees for motions brought under this subdivision.

deleted text begin (i)deleted text end new text begin (j)new text end Except as expressly provided, an enactment, amendment, or repeal of law does not constitute a substantial change in the circumstances for purposes of modifying a child support order.

deleted text begin (j) MS 2006 [Expired] deleted text end

(k) On the first modification deleted text begin under the income shares method of calculation deleted text end new text begin following implementation of amended child support guidelinesnew text end , the modification of basic support may be limited if the amount of the full variance would create hardship for either the obligor or the obligee.new text begin Hardship includes, but is not limited to, eligibility for assistance under chapter 256J.new text end

(l) The court may select an alternative effective date for a maintenance or support order if the parties enter into a binding agreement for an alternative effective date.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018. new text end

Sec. 22.

new text begin [518A.79] CHILD SUPPORT TASK FORCE. new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin There is established the Child Support Task Force for the Department of Human Services. The purpose of the task force is to advise the commissioner of human services on matters relevant to maintaining effective and efficient child support guidelines that will best serve the children of Minnesota and take into account the changing dynamics of families. new text end

new text begin Subd. 2. new text end

new text begin Members. new text end

new text begin (a) The task force must consist of: new text end

new text begin (1) two members of the house of representatives, one appointed by the speaker of the house and one appointed by the minority leader; new text end

new text begin (2) two members of the senate, one appointed by the majority leader and one appointed by the minority leader; new text end

new text begin (3) one representative from the Minnesota County Attorneys Association; new text end

new text begin (4) one staff member from the Department of Human Services Child Support Division; new text end

new text begin (5) one representative from a tribe with an approved IV-D program appointed by resolution of the Minnesota Indian Affairs Council; new text end

new text begin (6) one representative from the Minnesota Family Support Recovery Council; new text end

new text begin (7) one child support magistrate, family court referee, or one district court judge or retired judge with experience in child support matters, appointed by the chief justice of the Supreme Court; new text end

new text begin (8) four parents, at least two of whom represent diverse cultural and social communities, appointed by the commissioner with equal representation between custodial and noncustodial parents; new text end

new text begin (9) one representative from the Minnesota Legal Services Coalition; and new text end

new text begin (10) one representative from the Family Law Section of the Minnesota Bar Association. new text end

new text begin (b) Section 15.059 governs the Child Support Task Force. new text end

new text begin (c) Members of the task force shall be compensated as provided in section 15.059, subdivision 3. new text end

new text begin Subd. 3. new text end

new text begin Organization. new text end

new text begin (a) The commissioner or the commissioner's designee shall convene the first meeting of the task force. new text end

new text begin (b) The members of the task force shall annually elect a chair and other officers as the members deem necessary. new text end

new text begin (c) The task force shall meet at least three times per year, with one meeting devoted to collecting input from the public. new text end

new text begin Subd. 4. new text end

new text begin Staff. new text end

new text begin The commissioner shall provide support staff, office space, and administrative services for the task force. new text end

new text begin Subd. 5. new text end

new text begin Duties of the task force. new text end

new text begin (a) General duties of the task force include, but are not limited to: new text end

new text begin (1) serving in an advisory capacity to the commissioner of human services; new text end

new text begin (2) reviewing the effects of implementing the parenting expense adjustment enacted by the 2016 legislature; new text end

new text begin (3) at least every four years, preparing for and advising the commissioner on the development of the quadrennial review report; new text end

new text begin (4) collecting and studying information and data relating to child support awards; and new text end

new text begin (5) conducting a comprehensive review of child support guidelines, economic conditions, and other matters relevant to maintaining effective and efficient child support guidelines. new text end

new text begin (b) The task force must review, address, and make recommendations on the following priority issues: new text end

new text begin (1) the self-support reserve for custodial and noncustodial parents; new text end

new text begin (2) simultaneous child support orders; new text end

new text begin (3) obligors who are subject to child support orders in multiple counties; new text end

new text begin (4) parents with multiple families; new text end

new text begin (5) non-nuclear families, such as grandparents, relatives, and foster parents who are caretakers of children; new text end

new text begin (6) standards to apply for modifications; and new text end

new text begin (7) updating section 518A.35, subdivision 2, the guideline for basic support. new text end

new text begin Subd. 6. new text end

new text begin Consultation. new text end

new text begin The chair of the task force must consult with the Cultural and Ethnic Communities Leadership Council at least annually on the issues under consideration by the task force. new text end

new text begin Subd. 7. new text end

new text begin Report and recommendations. new text end

new text begin Beginning February 15, 2018, and biennially thereafter, if the task force is extended by the legislature, the commissioner shall prepare and submit to the chairs and ranking minority members of the committees of the house of representatives and the senate with jurisdiction over child support matters a report that summarizes the activities of the task force, issues identified by the task force, methods taken to address the issues, and recommendations for legislative action, if needed. new text end

new text begin Subd. 8. new text end

new text begin Expiration. new text end

new text begin The task force expires June 30, 2019, unless extended by the legislature. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 23.

Minnesota Statutes 2014, section 609.3241, is amended to read:

609.3241 PENALTY ASSESSMENT AUTHORIZED.

(a) When a court sentences an adult convicted of violating section 609.322 or 609.324, while acting other than as a prostitute, the court shall impose an assessment of not less than $500 and not more than $750 for a violation of section 609.324, subdivision 2, or a misdemeanor violation of section 609.324, subdivision 3; otherwise the court shall impose an assessment of not less than $750 and not more than $1,000. The assessment shall be distributed as provided in paragraph (c) and is in addition to the surcharge required by section 357.021, subdivision 6.

(b) The court may not waive payment of the minimum assessment required by this section. If the defendant qualifies for the services of a public defender or the court finds on the record that the convicted person is indigent or that immediate payment of the assessment would create undue hardship for the convicted person or that person's immediate family, the court may reduce the amount of the minimum assessment to not less than $100. The court also may authorize payment of the assessment in installments.

(c) The assessment collected under paragraph (a) must be distributed as follows:

(1) 40 percent of the assessment shall be forwarded to the political subdivision that employs the arresting officer for use in enforcement, training, and education activities related to combating sexual exploitation of youth, or if the arresting officer is an employee of the state, this portion shall be forwarded to the commissioner of public safety for those purposes identified in clause (3);

(2) 20 percent of the assessment shall be forwarded to the prosecuting agency that handled the case for use in training and education activities relating to combating sexual exploitation activities of youth; and

(3) 40 percent of the assessment must be forwarded to the commissioner of deleted text begin public safetydeleted text end new text begin healthnew text end to be deposited in the safe harbor for youth account in the special revenue fund and are appropriated to the commissioner for distribution to crime victims services organizations that provide services to sexually exploited youth, as defined in section 260C.007, subdivision 31.

(d) A safe harbor for youth account is established as a special account in the state treasury.

Sec. 24.

Minnesota Statutes 2015 Supplement, section 626.556, subdivision 2, is amended to read:

Subd. 2.

Definitions.

As used in this section, the following terms have the meanings given them unless the specific content indicates otherwise:

(a) "Accidental" means a sudden, not reasonably foreseeable, and unexpected occurrence or event which:

(1) is not likely to occur and could not have been prevented by exercise of due care; and

(2) if occurring while a child is receiving services from a facility, happens when the facility and the employee or person providing services in the facility are in compliance with the laws and rules relevant to the occurrence or event.

(b) "Commissioner" means the commissioner of human services.

(c) "Facility" means:

(1) a licensed or unlicensed day care facility, residential facility, agency, hospital, sanitarium, or other facility or institution required to be licensed under sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or chapter 245D;

(2) a school as defined in section 120A.05, subdivisions 9, 11, and 13; and chapter 124E; or

(3) a nonlicensed personal care provider organization as defined in section 256B.0625, subdivision 19a.

(d) "Family assessment" means a comprehensive assessment of child safety, risk of subsequent child maltreatment, and family strengths and needs that is applied to a child maltreatment report that does not allege sexual abuse or substantial child endangerment. Family assessment does not include a determination as to whether child maltreatment occurred but does determine the need for services to address the safety of family members and the risk of subsequent maltreatment.

(e) "Investigation" means fact gathering related to the current safety of a child and the risk of subsequent maltreatment that determines whether child maltreatment occurred and whether child protective services are needed. An investigation must be used when reports involve sexual abuse or substantial child endangerment, and for reports of maltreatment in facilities required to be licensed under chapter 245A or 245D; under sections 144.50 to 144.58 and 241.021; in a school as defined in section 120A.05, subdivisions 9, 11, and 13, and chapter 124E; or in a nonlicensed personal care provider association as defined in section 256B.0625, subdivision 19a.

(f) "Mental injury" means an injury to the psychological capacity or emotional stability of a child as evidenced by an observable or substantial impairment in the child's ability to function within a normal range of performance and behavior with due regard to the child's culture.

(g) "Neglect" means the commission or omission of any of the acts specified under clauses (1) to (9), other than by accidental means:

(1) failure by a person responsible for a child's care to supply a child with necessary food, clothing, shelter, health, medical, or other care required for the child's physical or mental health when reasonably able to do so;

(2) failure to protect a child from conditions or actions that seriously endanger the child's physical or mental health when reasonably able to do so, including a growth delay, which may be referred to as a failure to thrive, that has been diagnosed by a physician and is due to parental neglect;

(3) failure to provide for necessary supervision or child care arrangements appropriate for a child after considering factors as the child's age, mental ability, physical condition, length of absence, or environment, when the child is unable to care for the child's own basic needs or safety, or the basic needs or safety of another child in their care;

(4) failure to ensure that the child is educated as defined in sections 120A.22 and 260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's child with sympathomimetic medications, consistent with section 125A.091, subdivision 5;

(5) nothing in this section shall be construed to mean that a child is neglected solely because the child's parent, guardian, or other person responsible for the child's care in good faith selects and depends upon spiritual means or prayer for treatment or care of disease or remedial care of the child in lieu of medical care; except that a parent, guardian, or caretaker, or a person mandated to report pursuant to subdivision 3, has a duty to report if a lack of medical care may cause serious danger to the child's health. This section does not impose upon persons, not otherwise legally responsible for providing a child with necessary food, clothing, shelter, education, or medical care, a duty to provide that care;

(6) prenatal exposure to a controlled substance, as defined in section 253B.02, subdivision 2, used by the mother for a nonmedical purpose, as evidenced by withdrawal symptoms in the child at birth, results of a toxicology test performed on the mother at delivery or the child at birth, medical effects or developmental delays during the child's first year of life that medically indicate prenatal exposure to a controlled substance, or the presence of a fetal alcohol spectrum disorder;

(7) "medical neglect" as defined in section 260C.007, subdivision 6, clause (5);

(8) chronic and severe use of alcohol or a controlled substance by a parent or person responsible for the care of the child that adversely affects the child's basic needs and safety; or

(9) emotional harm from a pattern of behavior which contributes to impaired emotional functioning of the child which may be demonstrated by a substantial and observable effect in the child's behavior, emotional response, or cognition that is not within the normal range for the child's age and stage of development, with due regard to the child's culture.

(h) "Nonmaltreatment mistake" means:

(1) at the time of the incident, the individual was performing duties identified in the center's child care program plan required under Minnesota Rules, part 9503.0045;

(2) the individual has not been determined responsible for a similar incident that resulted in a finding of maltreatment for at least seven years;

(3) the individual has not been determined to have committed a similar nonmaltreatment mistake under this paragraph for at least four years;

(4) any injury to a child resulting from the incident, if treated, is treated only with remedies that are available over the counter, whether ordered by a medical professional or not; and

(5) except for the period when the incident occurred, the facility and the individual providing services were both in compliance with all licensing requirements relevant to the incident.

This definition only applies to child care centers licensed under Minnesota Rules, chapter 9503. If clauses (1) to (5) apply, rather than making a determination of substantiated maltreatment by the individual, the commissioner of human services shall determine that a nonmaltreatment mistake was made by the individual.

(i) "Operator" means an operator or agency as defined in section 245A.02.

(j) "Person responsible for the child's care" means (1) an individual functioning within the family unit and having responsibilities for the care of the child such as a parent, guardian, or other person having similar care responsibilities, or (2) an individual functioning outside the family unit and having responsibilities for the care of the child such as a teacher, school administrator, other school employees or agents, or other lawful custodian of a child having either full-time or short-term care responsibilities including, but not limited to, day care, babysitting whether paid or unpaid, counseling, teaching, and coaching.

(k) "Physical abuse" means any physical injury, mental injury, or threatened injury, inflicted by a person responsible for the child's care on a child other than by accidental means, or any physical or mental injury that cannot reasonably be explained by the child's history of injuries, or any aversive or deprivation procedures, or regulated interventions, that have not been authorized under section 125A.0942 or 245.825.

Abuse does not include reasonable and moderate physical discipline of a child administered by a parent or legal guardian which does not result in an injury. Abuse does not include the use of reasonable force by a teacher, principal, or school employee as allowed by section 121A.582. Actions which are not reasonable and moderate include, but are not limited to, any of the following:

(1) throwing, kicking, burning, biting, or cutting a child;

(2) striking a child with a closed fist;

(3) shaking a child under age three;

(4) striking or other actions which result in any nonaccidental injury to a child under 18 months of age;

(5) unreasonable interference with a child's breathing;

(6) threatening a child with a weapon, as defined in section 609.02, subdivision 6;

(7) striking a child under age one on the face or head;

(8) striking a child who is at least age one but under age four on the face or head, which results in an injury;

(9) purposely giving a child poison, alcohol, or dangerous, harmful, or controlled substances which were not prescribed for the child by a practitioner, in order to control or punish the child; or other substances that substantially affect the child's behavior, motor coordination, or judgment or that results in sickness or internal injury, or subjects the child to medical procedures that would be unnecessary if the child were not exposed to the substances;

(10) unreasonable physical confinement or restraint not permitted under section 609.379, including but not limited to tying, caging, or chaining; or

(11) in a school facility or school zone, an act by a person responsible for the child's care that is a violation under section 121A.58.

(l) "Practice of social services," for the purposes of subdivision 3, includes but is not limited to employee assistance counseling and the provision of guardian ad litem and parenting time expeditor services.

(m) "Report" means any communication received by the local welfare agency, police department, county sheriff, or agency responsible for child protection pursuant to this section that describes neglect or physical or sexual abuse of a child and contains sufficient content to identify the child and any person believed to be responsible for the neglect or abuse, if known.

(n) "Sexual abuse" means the subjection of a child by a person responsible for the child's care, by a person who has a significant relationship to the child, as defined in section 609.341, or by a person in a position of authority, as defined in section 609.341, subdivision 10, to any act which constitutes a violation of section 609.342 (criminal sexual conduct in the first degree), 609.343 (criminal sexual conduct in the second degree), 609.344 (criminal sexual conduct in the third degree), 609.345 (criminal sexual conduct in the fourth degree), or 609.3451 (criminal sexual conduct in the fifth degree). Sexual abuse also includes any act which involves a minor which constitutes a violation of prostitution offenses under sections 609.321 to 609.324 or 617.246. new text begin Effective May 29, 2017, sexual abuse includes all reports of known or suspected child sex trafficking involving a child who is identified as a victim of sex trafficking. Sexual abuse includes child sex trafficking as defined in section 609.321, subdivisions 7a and 7b. new text end Sexual abuse includes threatened sexual abuse which includes the status of a parent or household member who has committed a violation which requires registration as an offender under section 243.166, subdivision 1b, paragraph (a) or (b), or required registration under section 243.166, subdivision 1b, paragraph (a) or (b).

(o) "Substantial child endangerment" means a person responsible for a child's care, by act or omission, commits or attempts to commit an act against a child under their care that constitutes any of the following:

(1) egregious harm as defined in section 260C.007, subdivision 14;

(2) abandonment under section 260C.301, subdivision 2;

(3) neglect as defined in paragraph (g), clause (2), that substantially endangers the child's physical or mental health, including a growth delay, which may be referred to as failure to thrive, that has been diagnosed by a physician and is due to parental neglect;

(4) murder in the first, second, or third degree under section 609.185, 609.19, or 609.195;

(5) manslaughter in the first or second degree under section 609.20 or 609.205;

(6) assault in the first, second, or third degree under section 609.221, 609.222, or 609.223;

(7) solicitation, inducement, and promotion of prostitution under section 609.322;

(8) criminal sexual conduct under sections 609.342 to 609.3451;

(9) solicitation of children to engage in sexual conduct under section 609.352;

(10) malicious punishment or neglect or endangerment of a child under section 609.377 or 609.378;

(11) use of a minor in sexual performance under section 617.246; or

(12) parental behavior, status, or condition which mandates that the county attorney file a termination of parental rights petition under section 260C.503, subdivision 2.

(p) "Threatened injury" means a statement, overt act, condition, or status that represents a substantial risk of physical or sexual abuse or mental injury. Threatened injury includes, but is not limited to, exposing a child to a person responsible for the child's care, as defined in paragraph (j), clause (1), who has:

(1) subjected a child to, or failed to protect a child from, an overt act or condition that constitutes egregious harm, as defined in section 260C.007, subdivision 14, or a similar law of another jurisdiction;

(2) been found to be palpably unfit under section 260C.301, subdivision 1, paragraph (b), clause (4), or a similar law of another jurisdiction;

(3) committed an act that has resulted in an involuntary termination of parental rights under section 260C.301, or a similar law of another jurisdiction; or

(4) committed an act that has resulted in the involuntary transfer of permanent legal and physical custody of a child to a relative under Minnesota Statutes 2010, section 260C.201, subdivision 11, paragraph (d), clause (1), section 260C.515, subdivision 4, or a similar law of another jurisdiction.

A child is the subject of a report of threatened injury when the responsible social services agency receives birth match data under paragraph (q) from the Department of Human Services.

(q) Upon receiving data under section 144.225, subdivision 2b, contained in a birth record or recognition of parentage identifying a child who is subject to threatened injury under paragraph (p), the Department of Human Services shall send the data to the responsible social services agency. The data is known as "birth match" data. Unless the responsible social services agency has already begun an investigation or assessment of the report due to the birth of the child or execution of the recognition of parentage and the parent's previous history with child protection, the agency shall accept the birth match data as a report under this section. The agency may use either a family assessment or investigation to determine whether the child is safe. All of the provisions of this section apply. If the child is determined to be safe, the agency shall consult with the county attorney to determine the appropriateness of filing a petition alleging the child is in need of protection or services under section 260C.007, subdivision 6, clause (16), in order to deliver needed services. If the child is determined not to be safe, the agency and the county attorney shall take appropriate action as required under section 260C.503, subdivision 2.

(r) Persons who conduct assessments or investigations under this section shall take into account accepted child-rearing practices of the culture in which a child participates and accepted teacher discipline practices, which are not injurious to the child's health, welfare, and safety.

Sec. 25.

Minnesota Statutes 2014, section 626.556, subdivision 3e, is amended to read:

Subd. 3e.

Agency responsible for assessing or investigating reports of sexual abuse.

The local welfare agency is the agency responsible for investigating allegations of sexual abuse if the alleged offender is the parent, guardian, sibling, or an individual functioning within the family unit as a person responsible for the child's care, or a person with a significant relationship to the child if that person resides in the child's household.new text begin Effective May 29, 2017, the local welfare agency is also responsible for investigating when a child is identified as a victim of sex trafficking.new text end

Sec. 26.

Minnesota Statutes 2014, section 626.558, subdivision 1, is amended to read:

Subdivision 1.

Establishment of team.

A county shall establish a multidisciplinary child protection team that may include, but not be limited to, the director of the local welfare agency or designees, the county attorney or designees, the county sheriff or designees, representatives of health and education, representatives of mental health or other appropriate human service or community-based agencies, and parent groups. As used in this section, a "community-based agency" may include, but is not limited to, schools, social service agencies, family service and mental health collaboratives, new text begin children's advocacy centers, new text end early childhood and family education programs, Head Start, or other agencies serving children and families. A member of the team must be designated as the lead person of the team responsible for the planning process to develop standards for its activities with battered women's and domestic abuse programs and services.

Sec. 27.

Minnesota Statutes 2014, section 626.558, subdivision 2, is amended to read:

Subd. 2.

Duties of team.

A multidisciplinary child protection team may provide public and professional education, develop resources for prevention, intervention, and treatment, and provide case consultation to the local welfare agency or other interested community-based agencies. The community-based agencies may request case consultation from the multidisciplinary child protection team regarding a child or family for whom the community-based agency is providing services. As used in this section, "case consultation" means a case review process in which recommendations are made concerning services to be provided to the identified children and family. Case consultation may be performed by a committee or subcommittee of members representing human services, including mental health and chemical dependency; law enforcement, including probation and parole; the county attorney; new text begin a children's advocacy center; new text end health care; education; community-based agencies and other necessary agencies; and persons directly involved in an individual case as designated by other members performing case consultation.

Sec. 28.

Minnesota Statutes 2014, section 626.558, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Children's advocacy center; definition. new text end

new text begin (a) For purposes of this section, "children's advocacy center" means an organization, using a multidisciplinary team approach, whose primary purpose is to provide children who have been the victims of abuse and their nonoffending family members with: new text end

new text begin (1) support and advocacy; new text end

new text begin (2) specialized medical evaluation; new text end

new text begin (3) trauma-focused mental health services; and new text end

new text begin (4) forensic interviews. new text end

new text begin (b) Children's advocacy centers provide multidisciplinary case review and the tracking and monitoring of case progress. new text end

Sec. 29.

new text begin DIRECTION TO COMMISSIONERS; INCOME AND ASSET EXCLUSION. new text end

new text begin (a) The commissioner of human services shall not count payments made to families by the income and child development in the first three years of life demonstration project as income or assets for purposes of determining or redetermining eligibility for child care assistance programs under Minnesota Statutes, chapter 119B; the Minnesota family investment program, work benefit program, or diversionary work program under Minnesota Statutes, chapter 256J, during the duration of the demonstration. new text end

new text begin (b) The commissioner of human services shall not count payments made to families by the income and child development in the first three years of life demonstration project as income for purposes of determining or redetermining eligibility for medical assistance under Minnesota Statutes, chapter 256B, and MinnesotaCare under Minnesota Statutes, chapter 256L. new text end

new text begin (c) For the purposes of this section, "income and child development in the first three years of life demonstration project" means a demonstration project funded by the United States Department of Health and Human Services National Institutes of Health to evaluate whether the unconditional cash payments have a causal effect on the cognitive, socioemotional, and brain development of infants and toddlers. new text end

new text begin (d) This section shall only be implemented if Minnesota is chosen as a site for the child development in the first three years of life demonstration project, and expires January 1, 2022. new text end

new text begin (e) The commissioner of human services shall provide a report to the chairs and ranking minority members of the legislative committees having jurisdiction over human services issues by January 1, 2023, informing the legislature on the progress and outcomes of the demonstration under this section. new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (b) is effective August 16, 2016, or upon federal approval, whichever is later. The commissioner of human services shall notify the revisor of statutes when federal approval is obtained. new text end

ARTICLE 16

CHEMICAL AND MENTAL HEALTH

Section 1.

Minnesota Statutes 2015 Supplement, section 245.735, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Reform projectsdeleted text end new text begin Certified community behavioral health clinicsnew text end .

(a) The commissioner shall establish deleted text begin standards fordeleted text end new text begin anew text end state certification deleted text begin of clinics asdeleted text end new text begin process for new text end certified community behavioral health clinicsdeleted text begin , in accordancedeleted text end new text begin (CCBHCs) to be eligible for the prospective payment system in paragraph (f). Entities that choose to be CCBHCs must:new text end

new text begin (1) complynew text end with the new text begin CCBHC new text end criteria published deleted text begin on or before September 1, 2015,deleted text end by the United States Department of Health and Human Servicesdeleted text begin . Certification standards established by the commissioner shall require that:deleted text end new text begin ;new text end

deleted text begin (1)deleted text end new text begin (2) employ or contract fornew text end clinic staff new text begin who new text end have backgrounds in diverse disciplines, deleted text begin includedeleted text end new text begin includingnew text end licensed mental health professionals, and new text begin staff who new text end are culturally and linguistically trained to serve the needs of the clinic's patient population;

deleted text begin (2)deleted text end new text begin (3) ensure thatnew text end clinic services are available and accessible new text begin to patients of all ages and genders new text end and that crisis management services are available 24 hours per day;

deleted text begin (3)deleted text end new text begin (4) establishnew text end fees for clinic services deleted text begin are establisheddeleted text end new text begin for non-medical assistance patientsnew text end using a sliding fee scale deleted text begin anddeleted text end new text begin that ensures thatnew text end services to patients are not denied or limited due to a patient's inability to pay for services;

deleted text begin (4) clinics provide coordination of care across settings and providers to ensure seamless transitions for patients across the full spectrum of health services, including acute, chronic, and behavioral needs. Care coordination may be accomplished through partnerships or formal contracts with federally qualified health centers, inpatient psychiatric facilities, substance use and detoxification facilities, community-based mental health providers, and other community services, supports, and providers including schools, child welfare agencies, juvenile and criminal justice agencies, Indian Health Services clinics, tribally licensed health care and mental health facilities, urban Indian health clinics, Department of Veterans Affairs medical centers, outpatient clinics, drop-in centers, acute care hospitals, and hospital outpatient clinics; deleted text end new text begin (5) comply with quality assurance reporting requirements and other reporting requirements, including any required reporting of encounter data, clinical outcomes data, and quality data; new text end

deleted text begin (5) services provided by clinics includedeleted text end new text begin (6) providenew text end crisis mental health services, new text begin withdrawal management services, new text end emergency crisis intervention services, and stabilization services; screening, assessment, and diagnosis services, including risk assessments and level of care determinations; patient-centered treatment planning; outpatient mental health and substance use services; targeted case management; psychiatric rehabilitation services; peer support and counselor services and family support services; and intensive community-based mental health services, including mental health services for members of the armed forces and veterans; deleted text begin anddeleted text end

deleted text begin (6) clinics comply with quality assurance reporting requirements and other reporting requirements, including any required reporting of encounter data, clinical outcomes data, and quality data. deleted text end new text begin (7) provide coordination of care across settings and providers to ensure seamless transitions for patients across the full spectrum of health services, including acute, chronic, and behavioral needs. Care coordination may be accomplished through partnerships or formal contracts with: new text end

new text begin (i) counties, health plans, pharmacists, pharmacies, rural health clinics, federally qualified health centers, inpatient psychiatric facilities, substance use and detoxification facilities, or community-based mental health providers; and new text end

new text begin (ii) other community services, supports, and providers, including schools, child welfare agencies, juvenile and criminal justice agencies, Indian health services clinics, tribally licensed health care and mental health facilities, urban Indian health clinics, Department of Veterans Affairs medical centers, outpatient clinics, drop-in centers, acute care hospitals, and hospital outpatient clinics; new text end

new text begin (8) be certified as mental health clinics under section 245.69, subdivision 2; new text end

new text begin (9) be certified to provide integrated treatment for co-occurring mental illness and substance use disorders in adults or children under Minnesota Rules, chapter 9533, effective July 1, 2017; new text end

new text begin (10) comply with standards relating to mental health services in Minnesota Rules, parts 9505.0370 to 9505.0372; new text end

new text begin (11) be licensed to provide chemical dependency treatment under Minnesota Rules, parts 9530.6405 to 9530.6505; new text end

new text begin (12) be certified to provide children's therapeutic services and supports under section 256B.0943; new text end

new text begin (13) be certified to provide adult rehabilitative mental health services under section 256B.0623; new text end

new text begin (14) be enrolled to provide mental health crisis response services under section 256B.0624; new text end

new text begin (15) be enrolled to provide mental health targeted case management under section 256B.0625, subdivision 20; new text end

new text begin (16) comply with standards relating to mental health case management in Minnesota Rules, parts 9520.0900 to 9520.0926; and new text end

new text begin (17) provide services that comply with the evidence-based practices described in paragraph (e). new text end

new text begin (b) If an entity is unable to provide one or more of the services listed in paragraph (a), clauses (6) to (17), the commissioner may certify the entity as a CCBHC, if the entity has a current contract with another entity that has the required authority to provide that service and that meets federal CCBHC criteria as a designated collaborating organization, or, to the extent allowed by the federal CCBHC criteria, the commissioner may approve a referral arrangement. The CCBHC must meet federal requirements regarding the type and scope of services to be provided directly by the CCBHC. new text end

new text begin (c) Notwithstanding any other law that requires a county contract or other form of county approval for certain services listed in paragraph (a), clause (6), a clinic that otherwise meets CCBHC requirements may receive the prospective payment under paragraph (f) for those services without a county contract or county approval. There is no county share when medical assistance pays the CCBHC prospective payment. As part of the certification process in paragraph (a), the commissioner shall require a letter of support from the CCBHC's host county confirming that the CCBHC and the county or counties it serves have an ongoing relationship to facilitate access and continuity of care, especially for individuals who are uninsured or who may go on and off medical assistance. new text end

new text begin (d) When the standards listed in paragraph (a) or other applicable standards conflict or address similar issues in duplicative or incompatible ways, the commissioner may grant variances to state requirements if the variances do not conflict with federal requirements. If standards overlap, the commissioner may substitute all or a part of a licensure or certification that is substantially the same as another licensure or certification. The commissioner shall consult with stakeholders, as described in subdivision 4, before granting variances under this provision. new text end

new text begin (e) The commissioner shall issue a list of required evidence-based practices to be delivered by CCBHCs, and may also provide a list of recommended evidence-based practices. The commissioner may update the list to reflect advances in outcomes research and medical services for persons living with mental illnesses or substance use disorders. The commissioner shall take into consideration the adequacy of evidence to support the efficacy of the practice, the quality of workforce available, and the current availability of the practice in the state. At least 30 days before issuing the initial list and any revisions, the commissioner shall provide stakeholders with an opportunity to comment. new text end

deleted text begin (b)deleted text end new text begin (f)new text end The commissioner shall establish standards and methodologies for a prospective payment system for medical assistance payments for deleted text begin mental healthdeleted text end services delivered by certified community behavioral health clinics, in accordance with guidance issued deleted text begin on or before September 1, 2015,deleted text end by the Centers for Medicare and Medicaid Services. During the operation of the demonstration project, payments shall comply with federal requirements for deleted text begin a 90 percentdeleted text end new text begin annew text end enhanced federal medical assistance percentage. new text begin The commissioner may include quality bonus payment in the prospective payment system based on federal criteria and on a clinic's provision of the evidence-based practices in paragraph (e). The prospective payment system does not apply to MinnesotaCare. Implementation of the prospective payment system is effective July 1, 2017, or upon federal approval, whichever is later.new text end

new text begin (g) The commissioner shall seek federal approval to continue federal financial participation in payment for CCBHC services after the federal demonstration period ends for clinics that were certified as CCBHCs during the demonstration period and that continue to meet the CCBHC certification standards in paragraph (a). Payment for CCBHC services shall cease effective July 1, 2019, if continued federal financial participation for the payment of CCBHC services cannot be obtained. new text end

new text begin (h) The commissioner may certify at least one CCBHC located in an urban area and at least one CCBHC located in a rural area, as defined by federal criteria. To the extent allowed by federal law, the commissioner may limit the number of certified clinics so that the projected claims for certified clinics will not exceed the funds budgeted for this purpose. The commissioner shall give preference to clinics that: new text end

new text begin (1) provide a comprehensive range of services and evidence-based practices for all age groups, with services being fully coordinated and integrated; and new text end

new text begin (2) enhance the state's ability to meet the federal priorities to be selected as a CCBHC demonstration state. new text end

new text begin (i) The commissioner shall recertify CCBHCs at least every three years. The commissioner shall establish a process for decertification and shall require corrective action, medical assistance repayment, or decertification of a CCBHC that no longer meets the requirements in this section or that fails to meet the standards provided by the commissioner in the application and certification process. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 2.

Minnesota Statutes 2015 Supplement, section 245.735, subdivision 4, is amended to read:

Subd. 4.

Public participation.

In developing deleted text begin the projectsdeleted text end new text begin and implementing CCBHCsnew text end under subdivision 3, the commissioner shall consultnew text begin , collaborate, and partnernew text end with new text begin stakeholders, including but not limited to new text end mental health providers, new text begin substance use disorder treatment providers, new text end advocacy organizations, licensed mental health professionals, new text begin counties, tribes, hospitals, other health care providers, new text end and Minnesota public health care program enrollees who receive mental health services and their families.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 3.

Minnesota Statutes 2014, section 245.99, subdivision 2, is amended to read:

Subd. 2.

Rental assistance.

The program shall pay up to 90 days of housing assistance for persons with a serious deleted text begin and persistentdeleted text end mental illness who require inpatient or residential care for stabilization. The commissioner of human services may extend the length of assistance on a case-by-case basis.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 4.

Minnesota Statutes 2014, section 254B.01, subdivision 4a, is amended to read:

Subd. 4a.

Culturally specific program.

(a) "Culturally specific program" means a substance use disorder treatment service programnew text begin or subprogramnew text end that is recovery-focused and culturally specific when the program:

(1) improves service quality to and outcomes of a specific population by advancing health equity to help eliminate health disparities; and

(2) ensures effective, equitable, comprehensive, and respectful quality care services that are responsive to an individual within a specific population's values, beliefs and practices, health literacy, preferred language, and other communication needs.

(b) A tribally licensed substance use disorder program that is designated as serving a culturally specific population by the applicable tribal government is deemed to satisfy this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 5.

Minnesota Statutes 2014, section 254B.03, subdivision 4, is amended to read:

Subd. 4.

Division of costs.

new text begin (a) new text end Except for services provided by a county under section 254B.09, subdivision 1, or services provided under section 256B.69 deleted text begin or 256D.03, subdivision 4, paragraph (b)deleted text end , the county shall, out of local money, pay the state for 22.95 percent of the cost of chemical dependency services, including those services provided to persons eligible for medical assistance under chapter 256B and general assistance medical care under chapter 256D. Counties may use the indigent hospitalization levy for treatment and hospital payments made under this section.

new text begin (b) new text end 22.95 percent of any state collections from private or third-party pay, less 15 percent for the cost of payment and collections, must be distributed to the county that paid for a portion of the treatment under this section.

new text begin (c) For fiscal year 2017 only, the 22.95 percentages under paragraphs (a) and (b) are equal to 20.2 percent. new text end

Sec. 6.

Minnesota Statutes 2014, section 254B.04, subdivision 2a, is amended to read:

Subd. 2a.

Eligibility for treatment in residential settings.

Notwithstanding provisions of Minnesota Rules, part 9530.6622, subparts 5 and 6, related to an assessor's discretion in making placements to residential treatment settings, a person eligible for services under this section must score at level 4 on assessment dimensions related to relapse, continued use, or recovery environment in order to be assigned to services with a room and board component reimbursed under this sectionnew text begin . Whether a treatment facility has been designated an institution for mental diseases under United States Code, title 42, section 1396d, shall not be a factor in making placementsnew text end .

Sec. 7.

Minnesota Statutes 2015 Supplement, section 254B.05, subdivision 5, is amended to read:

Subd. 5.

Rate requirements.

(a) The commissioner shall establish rates for chemical dependency services and service enhancements funded under this chapter.

(b) Eligible chemical dependency treatment services include:

(1) outpatient treatment services that are licensed according to Minnesota Rules, parts 9530.6405 to 9530.6480, or applicable tribal license;

(2) medication-assisted therapy services that are licensed according to Minnesota Rules, parts 9530.6405 to 9530.6480 and 9530.6500, or applicable tribal license;

(3) medication-assisted therapy plus enhanced treatment services that meet the requirements of clause (2) and provide nine hours of clinical services each week;

(4) high, medium, and low intensity residential treatment services that are licensed according to Minnesota Rules, parts 9530.6405 to 9530.6480 and 9530.6505, or applicable tribal license which provide, respectively, 30, 15, and five hours of clinical services each week;

(5) hospital-based treatment services that are licensed according to Minnesota Rules, parts 9530.6405 to 9530.6480, or applicable tribal license and licensed as a hospital under sections 144.50 to 144.56;

(6) adolescent treatment programs that are licensed as outpatient treatment programs according to Minnesota Rules, parts 9530.6405 to 9530.6485, or as residential treatment programs according to Minnesota Rules, parts 2960.0010 to 2960.0220, and 2960.0430 to 2960.0490, or applicable tribal license;

(7) high-intensity residential treatment services that are licensed according to Minnesota Rules, parts 9530.6405 to 9530.6480 and 9530.6505, or applicable tribal license, which provide 30 hours of clinical services each week provided by a state-operated vendor or to clients who have been civilly committed to the commissioner, present the most complex and difficult care needs, and are a potential threat to the community; and

(8) room and board facilities that meet the requirements of subdivision 1a.

(c) The commissioner shall establish higher rates for programs that meet the requirements of paragraph (b) andnew text begin one ofnew text end the following additional requirements:

(1) programs that serve parents with their children if the program:

(i) provides on-site child care during the hours of treatment activity that:

(A) is licensed under chapter 245A as a child care center under Minnesota Rules, chapter 9503; or

(B) meets the licensure exclusion criteria of section 245A.03, subdivision 2, paragraph (a), clause (6), and meets the requirements under Minnesota Rules, part 9530.6490, subpart 4; or

(ii) arranges for off-site child care during hours of treatment activity at a facility that is licensed under chapter 245A as:

(A) a child care center under Minnesota Rules, chapter 9503; or

(B) a family child care home under Minnesota Rules, chapter 9502;

(2) culturally specific programs as defined in section 254B.01, subdivision 4a,new text begin or programs or subprograms serving special populations,new text end if the programnew text begin or subprogramnew text end meets thenew text begin followingnew text end requirements deleted text begin in Minnesota Rules, part 9530.6605, subpart 13;deleted text end new text begin :new text end

new text begin (i) is designed to address the unique needs of individuals who share a common language, racial, ethnic, or social background; new text end

new text begin (ii) is governed with significant input from individuals of that specific background; and new text end

new text begin (iii) employs individuals to provide individual or group therapy, at least 50 percent of whom are of that specific background, except when the common social background of the individuals served is a traumatic brain injury or cognitive disability and the program employs treatment staff who have the necessary professional training, as approved by the commissioner, to serve clients with the specific disabilities that the program is designed to serve; new text end

(3) programs that offer medical services delivered by appropriately credentialed health care staff in an amount equal to two hours per client per week if the medical needs of the client and the nature and provision of any medical services provided are documented in the client file; and

(4) programs that offer services to individuals with co-occurring mental health and chemical dependency problems if:

(i) the program meets the co-occurring requirements in Minnesota Rules, part 9530.6495;

(ii) 25 percent of the counseling staff are licensed mental health professionals, as defined in section 245.462, subdivision 18, clauses (1) to (6), or are students or licensing candidates under the supervision of a licensed alcohol and drug counselor supervisor and licensed mental health professional, except that no more than 50 percent of the mental health staff may be students or licensing candidates with time documented to be directly related to provisions of co-occurring services;

(iii) clients scoring positive on a standardized mental health screen receive a mental health diagnostic assessment within ten days of admission;

(iv) the program has standards for multidisciplinary case review that include a monthly review for each client that, at a minimum, includes a licensed mental health professional and licensed alcohol and drug counselor, and their involvement in the review is documented;

(v) family education is offered that addresses mental health and substance abuse disorders and the interaction between the two; and

(vi) co-occurring counseling staff deleted text begin willdeleted text end new text begin shall new text end receive eight hours of co-occurring disorder training annually.

(d) In order to be eligible for a higher rate under paragraph (c), clause (1), a program that provides arrangements for off-site child care must maintain current documentation at the chemical dependency facility of the child care provider's current licensure to provide child care services. Programs that provide child care according to paragraph (c), clause (1), must be deemed in compliance with the licensing requirements in Minnesota Rules, part 9530.6490.

(e) Adolescent residential programs that meet the requirements of Minnesota Rules, parts 2960.0430 to 2960.0490 and 2960.0580 to 2960.0690, are exempt from the requirements in paragraph (c), clause (4), items (i) to (iv).

(f) Subject to federal approval, chemical dependency services that are otherwise covered as direct face-to-face services may be provided via two-way interactive video. The use of two-way interactive video must be medically appropriate to the condition and needs of the person being served. Reimbursement shall be at the same rates and under the same conditions that would otherwise apply to direct face-to-face services. The interactive video equipment and connection must comply with Medicare standards in effect at the time the service is provided.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 8.

Minnesota Statutes 2014, section 254B.06, subdivision 2, is amended to read:

Subd. 2.

Allocation of collections.

new text begin (a)new text end The commissioner shall allocate all federal financial participation collections to a special revenue account. The commissioner shall allocate 77.05 percent of patient payments and third-party payments to the special revenue account and 22.95 percent to the county financially responsible for the patient.

new text begin (b) For fiscal year 2017 only, the commissioner's allocation to the special revenue account shall be increased from 77.05 percent to 79.8 percent and the county financial responsibility shall be reduced from 22.95 percent to 20.2 percent. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 9.

Minnesota Statutes 2014, section 254B.06, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Reimbursement for institutions for mental diseases. new text end

new text begin The commissioner shall not deny reimbursement to a program designated as an institution for mental diseases under United States Code, title 42, section 1396d, due to a reduction in federal financial participation and the addition of new residential beds. new text end

Sec. 10.

new text begin [254B.16] PILOT PROJECTS; TREATMENT FOR PREGNANT AND POSTPARTUM WOMEN WITH SUBSTANCE USE DISORDER. new text end

new text begin Subdivision 1. new text end

new text begin Pilot projects established. new text end

new text begin (a) Within the limits of federal funds available specifically for this purpose, the commissioner of human services shall establish pilot projects to provide substance use disorder treatment and services to pregnant and postpartum women with a primary diagnosis of substance use disorder, including opioid use disorder. Pilot projects funded under this section must: new text end

new text begin (1) promote flexible uses of funds to provide treatment and services to pregnant and postpartum women with substance use disorders; new text end

new text begin (2) fund family-based treatment and services for pregnant and postpartum women with substance use disorders; new text end

new text begin (3) identify gaps in services along the continuum of care that are provided to pregnant and postpartum women with substance use disorders; and new text end

new text begin (4) encourage new approaches to service delivery and service delivery models. new text end

new text begin (b) A pilot project funded under this section must provide at least a portion of its treatment and services to women who receive services on an outpatient basis. new text end

new text begin Subd. 2. new text end

new text begin Federal funds. new text end

new text begin The commissioner shall apply for any available grant funds from the federal Center for Substance Abuse Treatment for these pilot projects. new text end

Sec. 11.

Minnesota Statutes 2014, section 256B.0622, is amended by adding a subdivision to read:

new text begin Subd. 12. new text end

new text begin Start-up grants. new text end

new text begin The commissioner may, within available appropriations, disburse grant funding to counties, Indian tribes, or mental health service providers to establish additional assertive community treatment teams, intensive residential treatment services, or crisis residential services. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

ARTICLE 17

DIRECT CARE AND TREATMENT

Section 1.

Minnesota Statutes 2014, section 246.50, subdivision 7, is amended to read:

Subd. 7.

Client's county.

"Client's county" means the county of deleted text begin the client's legal settlement for poor relief purposes at the time of commitment or voluntary admission to a state facility, or if the client has no such legal settlement in this state, it means the county of commitmentdeleted text end new text begin financial responsibility under chapter 256Gnew text end , except that where a client with no deleted text begin such legal settlementdeleted text end new text begin residence in this state new text end is committed while serving a sentence at a penal institution, it means the county from which the client was sentenced.

Sec. 2.

Minnesota Statutes 2014, section 246.54, as amended by Laws 2015, chapter 71, article 4, section 2, is amended to read:

246.54 LIABILITY OF COUNTY; REIMBURSEMENT.

Subdivision 1.

deleted text begin County portion for cost of caredeleted text end new text begin Generallynew text end .

deleted text begin (a)deleted text end Except for chemical dependency services provided under sections 254B.01 to 254B.09, the client's county shall pay to the state of Minnesota a portion of the cost of care provided in a regional treatment center or a state nursing facility to a client legally settled in that county. A county's payment shall be made from the county's own sources of revenue and payments shall equal a percentage of the cost of care, as determined by the commissioner, for each day, or the portion thereof, that the client spends at a regional treatment center or a state nursing facility deleted text begin according to the following schedule:deleted text end new text begin .new text end

new text begin Subd. 1a. new text end

new text begin Anoka-Metro Regional Treatment Center. new text end

new text begin (a) A county's payment of the cost of care provided at Anoka-Metro Regional Treatment Center shall be according to the following schedule: new text end

(1) zero percent for the first 30 days;

(2) 20 percent for days 31 and over if the stay is determined to be clinically appropriate for the client; and

(3) 100 percent for each day during the stay, including the day of admission, when the facility determines that it is clinically appropriate for the client to be discharged.

(b) If payments received by the state under sections 246.50 to 246.53 exceed 80 percent of the cost of care for days over 31 for clients who meet the criteria in paragraph (a), clause (2), the county shall be responsible for paying the state only the remaining amount. The county shall not be entitled to reimbursement from the client, the client's estate, or from the client's relatives, except as provided in section 246.53.

new text begin Subd. 1b. new text end

new text begin Community behavioral health hospitals. new text end

new text begin A county's payment of the cost of care provided at state-operated community-based behavioral health hospitals shall be according to the following schedule: new text end

new text begin (1) 100 percent for each day during the stay, including the day of admission, when the facility determines that it is clinically appropriate for the client to be discharged; and new text end

new text begin (2) the county shall not be entitled to reimbursement from the client, the client's estate, or from the client's relatives, except as provided in section 246.53. new text end

new text begin Subd. 1c. new text end

new text begin State-operated forensic services. new text end

new text begin A county's payment of the cost of care provided at state-operated forensic services shall be according to the following schedule: new text end

new text begin (1) Minnesota Security Hospital: ten percent for each day, or portion thereof, that the client spends in a Minnesota Security Hospital program. If payments received by the state under sections 246.50 to 246.53 for services provided at the Minnesota Security Hospital exceed 90 percent of the cost of care, the county shall be responsible for paying the state only the remaining amount. The county shall not be entitled to reimbursement from the client, the client's estate, or the client's relatives except as provided in section 246.53; new text end

new text begin (2) forensic nursing home: ten percent for each day, or portion thereof, that the client spends in a forensic nursing home program. If payments received by the state under sections 246.50 to 246.53 for services provided at the forensic nursing home exceed 90 percent of the cost of care, the county shall be responsible for paying the state only the remaining amount. The county shall not be entitled to reimbursement from the client, the client's estate, or the client's relatives except as provided in section 246.53; new text end

new text begin (3) forensic transition services: 50 percent for each day, or portion thereof, that the client spends in the forensic transition services program. If payments received by the state under sections 246.50 to 246.53 for services provided in the forensic transition services exceed 50 percent of the cost of care, the county shall be responsible for paying the state only the remaining amount. The county shall not be entitled to reimbursement from the client, the client's estate, or the client's relatives except as provided in section 246.53; and new text end

new text begin (4) residential competency restoration program: new text end

new text begin (i) 20 percent for each day, or portion thereof, that the client spends in a residential competency restoration program while the client is in need of restoration services; new text end

new text begin (ii) 50 percent for each day, or portion thereof, that the client spends in a residential competency restoration program once the examiner determines that the client no longer needs restoration services; and new text end

new text begin (iii) 100 percent for each day, or portion thereof, once charges against a client have been resolved or dropped. new text end

Subd. 2.

Exceptions.

deleted text begin (a) Subdivision 1 does not apply to services provided at the Minnesota Security Hospital. For services at the Minnesota Security Hospital, a county's payment shall be made from the county's own sources of revenue and payments. Excluding the state-operated forensic transition service, payments to the state from the county shall equal ten percent of the cost of care, as determined by the commissioner, for each day, or the portion thereof, that the client spends at the facility. For the state-operated forensic transition service, payments to the state from the county shall equal 50 percent of the cost of care, as determined by the commissioner, for each day, or the portion thereof, that the client spends in the program. If payments received by the state under sections 246.50 to 246.53 for services provided at the Minnesota Security Hospital, excluding the state-operated forensic transition service, exceed 90 percent of the cost of care, the county shall be responsible for paying the state only the remaining amount. If payments received by the state under sections 246.50 to 246.53 for the state-operated forensic transition service exceed 50 percent of the cost of care, the county shall be responsible for paying the state only the remaining amount. The county shall not be entitled to reimbursement from the client, the client's estate, or from the client's relatives, except as provided in section 246.53. deleted text end

deleted text begin (b)deleted text end Regardless of the facility to which the client is committed, deleted text begin subdivision 1 doesdeleted text end new text begin subdivisions 1, 1a, 1b, and 1c, donew text end not apply to the following individuals:

(1) clients who are committed as sexual psychopathic personalities under section 253D.02, subdivision 15; and

(2) clients who are committed as sexually dangerous persons under section 253D.02, subdivision 16.

Sec. 3.

Minnesota Statutes 2014, section 246B.01, subdivision 1b, is amended to read:

Subd. 1b.

Civilly committed sex offender's county.

"Civilly committed sex offender's county" means the county of deleted text begin the civilly committed sex offender's legal settlement for poor relief purposes at the time of commitment. If the civilly committed sex offender has no legal settlement for poor relief in this state, it means the county of commitmentdeleted text end new text begin financial responsibility under chapter 256Gnew text end , except that when a civilly committed sex offender with no deleted text begin legal settlement for poor reliefdeleted text end new text begin residence in this state new text end is committed while serving a sentence at a penal institution, it means the county from which the civilly committed sex offender was sentenced.

Sec. 4.

Minnesota Statutes 2014, section 246B.035, is amended to read:

246B.035 ANNUAL PERFORMANCE REPORT REQUIRED.

The executive director of the Minnesota sex offender program shall submit electronically a performance report to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over funding for the program by deleted text begin Januarydeleted text end new text begin Februarynew text end 15 of each year beginning in deleted text begin 2010deleted text end new text begin 2017new text end . The report must include the following:

(1) a description of the program, including the strategic mission, goals, objectives, and outcomes;

(2) the programwide per diem reported in a standard calculated method as outlined in the program policies and procedures;

(3) program annual statistics as outlined in the departmental policies and procedures; and

(4) the sex offender program evaluation report required under section 246B.03. The executive director shall submit a printed copy upon request.

Sec. 5.

new text begin REPORT ON ANOKA-METRO REGIONAL TREATMENT CENTER (AMRTC), MINNESOTA SECURITY HOSPITAL (MSH), AND COMMUNITY BEHAVIORAL HEALTH HOSPITALS (CBHH). new text end

new text begin The commissioner of human services shall issue a public quarterly report to the chairs and ranking minority leaders of the senate and house of representatives committees having jurisdiction over health and human services issues on the AMRTC, MSH, and CBHH. The report shall contain information on the number of licensed beds, budgeted capacity, occupancy rate, number of Occupational Safety and Health Administration (OSHA) recordable injuries and the number of OSHA recordable injuries due to patient aggression or restraint, number of clinical positions budgeted, the percentage of those positions that are filled, the number of direct care positions budgeted, and the percentage of those positions that are filled. new text end

ARTICLE 18

CONTINUING CARE

Section 1.

Minnesota Statutes 2014, section 144A.073, subdivision 13, is amended to read:

Subd. 13.

Moratorium exception funding.

In fiscal year 2013, the commissioner of health may approve moratorium exception projects under this section for which the full annualized state share of medical assistance costs does not exceed $1,000,000new text begin plus any carryover of previous appropriations for this purposenew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2012. new text end

Sec. 2.

Minnesota Statutes 2014, section 144A.073, subdivision 14, is amended to read:

Subd. 14.

Moratorium exception funding.

In fiscal year 2015, the commissioner of health may approve moratorium exception projects under this section for which the full annualized state share of medical assistance costs does not exceed $1,000,000new text begin plus any carryover of previous appropriations for this purposenew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2014. new text end

Sec. 3.

Minnesota Statutes 2014, section 144A.073, is amended by adding a subdivision to read:

new text begin Subd. 15. new text end

new text begin Moratorium exception funding. new text end

new text begin In fiscal year 2017, the commissioner may approve moratorium exception projects under this section for which the full annualized state share of medical assistance costs does not exceed $1,000,000 plus any carryover of previous appropriations for this purpose. new text end

Sec. 4.

Minnesota Statutes 2014, section 144A.611, subdivision 1, is amended to read:

Subdivision 1.

Nursing homes and certified boarding care homes.

The actual costs of tuition and new text begin textbooks and new text end reasonable expenses for the competency evaluation or the nursing assistant training program and competency evaluation approved under section 144A.61, which are paid to nursing assistants new text begin or adult training programs new text end pursuant to deleted text begin subdivisiondeleted text end new text begin subdivisionsnew text end 2new text begin and 4new text end , are a reimbursable expense for nursing homes and certified boarding care homes under deleted text begin the provisions of chapter 256B and the rules promulgated thereunderdeleted text end new text begin section 256B.431, subdivision 36new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for costs incurred on or after October 1, 2016. new text end

Sec. 5.

Minnesota Statutes 2014, section 144A.611, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Nursing assistantsdeleted text end new text begin Reimbursement for training program and competency evaluation costsnew text end .

A nursing assistant who has completed an approved competency evaluation or an approved training program and competency evaluation shall be reimbursed by the nursing home or certified boarding care home for actual costs of tuition new text begin and textbooks new text end and reasonable expenses for the competency evaluation or the training program and competency evaluation 90 days after the date of employment, or upon completion of the approved training program, whichever is later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for costs incurred on or after October 1, 2016. new text end

Sec. 6.

Minnesota Statutes 2014, section 144A.611, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Reimbursement for adult basic education components. new text end

new text begin (a) Nursing facilities and certified boarding care homes shall provide reimbursement for costs related to additional adult basic education components of an approved nursing assistant training program, to: new text end

new text begin (1) an adult training program that provided an approved nursing assistant training program to an employee of the nursing facility or boarding care home; or new text end

new text begin (2) a nursing assistant who is an employee of the nursing facility or boarding care home and completed an approved nursing assistant training program provided by an adult training program. new text end

new text begin (b) For purposes of this subdivision, adult basic education components of a nursing assistant training program must include the following, if needed: training in mathematics, vocabulary, literacy skills, workplace skills, resume writing, and job interview skills. Reimbursement provided under this subdivision shall not exceed 30 percent of the cost of tuition, textbooks, and competency evaluation. new text end

new text begin (c) An adult training program is prohibited from billing program students, nursing facilities, or certified boarding care homes for costs under this subdivision until the program student has been employed by the nursing facility as a certified nursing assistant for at least 90 days. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for costs incurred on or after October 1, 2016. new text end

Sec. 7.

Minnesota Statutes 2014, section 245A.11, subdivision 2a, as amended by Laws 2016, chapter 163, article 3, section 5, if enacted, is amended to read:

Subd. 2a.

Adult foster care and community residential setting license capacity.

(a) The commissioner shall issue adult foster care and community residential setting licenses with a maximum licensed capacity of four beds, including nonstaff roomers and boarders, except that the commissioner may issue a license with a capacity of five beds, including roomers and boarders, according to paragraphs (b) to (f).

(b) The license holder may have a maximum license capacity of five if all persons in care are age 55 or over and do not have a serious and persistent mental illness or a developmental disability.

(c) The commissioner may grant variances to paragraph (b) to allow a facility with a licensed capacity of up to five persons to admit an individual under the age of 55 if the variance complies with section 245A.04, subdivision 9, and approval of the variance is recommended by the county in which the licensed facility is located.

(d) The commissioner may grant variances to paragraph (b) to allow the use of an additional bed, up to five, for emergency crisis services for a person with serious and persistent mental illness or a developmental disability, regardless of age, if the variance complies with section 245A.04, subdivision 9, and approval of the variance is recommended by the county in which the licensed facility is located.

(e) The commissioner may grant a variance to paragraph (b) to allow for the use of an additional bed, up to five, for respite services, as defined in section 245A.02, for persons with disabilities, regardless of age, if the variance complies with sections 245A.03, subdivision 7, and 245A.04, subdivision 9, and approval of the variance is recommended by the county in which the licensed facility is located. Respite care may be provided under the following conditions:

(1) staffing ratios cannot be reduced below the approved level for the individuals being served in the home on a permanent basis;

(2) no more than two different individuals can be accepted for respite services in any calendar month and the total respite days may not exceed 120 days per program in any calendar year;

(3) the person receiving respite services must have his or her own bedroom, which could be used for alternative purposes when not used as a respite bedroom, and cannot be the room of another person who lives in the facility; and

(4) individuals living in the facility must be notified when the variance is approved. The provider must give 60 days' notice in writing to the residents and their legal representatives prior to accepting the first respite placement. Notice must be given to residents at least two days prior to service initiation, or as soon as the license holder is able if they receive notice of the need for respite less than two days prior to initiation, each time a respite client will be served, unless the requirement for this notice is waived by the resident or legal guardian.

(f) The commissioner may issue an adult foster care or community residential setting license with a capacity of five adults if the fifth bed does not increase the overall statewide capacity of licensed adult foster care or community residential setting beds in homes that are not the primary residence of the license holder, as identified in a plan submitted to the commissioner by the county, when the capacity is recommended by the county licensing agency of the county in which the facility is located and if the recommendation verifies that:

(1) the facility meets the physical environment requirements in the adult foster care licensing rule;

(2) the five-bed living arrangement is specified for each resident in the resident's:

(i) individualized plan of care;

(ii) individual service plan under section 256B.092, subdivision 1b, if required; or

(iii) individual resident placement agreement under Minnesota Rules, part 9555.5105, subpart 19, if required;

(3) the license holder obtains written and signed informed consent from each resident or resident's legal representative documenting the resident's informed choice to remain living in the home and that the resident's refusal to consent would not have resulted in service termination; and

(4) the facility was licensed for adult foster care before March 1, 2011.

(g) The commissioner shall not issue a new adult foster care license under paragraph (f) after June 30, deleted text begin 2019deleted text end new text begin 2017new text end . The commissioner shall allow a facility with an adult foster care license issued under paragraph (f) before June 30, deleted text begin 2019deleted text end new text begin 2017new text end , to continue with a capacity of five adults if the license holder continues to comply with the requirements in paragraph (f).

Sec. 8.

Minnesota Statutes 2015 Supplement, section 256B.431, subdivision 36, is amended to read:

Subd. 36.

Employee scholarship costs and training in English as a second language.

(a) For the period between July 1, 2001, and June 30, 2003, the commissioner shall provide to each nursing facility reimbursed under this section, section 256B.434, or any other section, a scholarship per diem of 25 cents to the total operating payment rate. For the 27-month period beginning October 1, 2015, through December 31, 2017, the commissioner shall allow a scholarship per diem of up to 25 cents for each nursing facility with no scholarship per diem that is requesting a scholarship per diem to be added to the external fixed payment rate to be used:

(1) for employee scholarships that satisfy the following requirements:

(i) scholarships are available to all employees who work an average of at least ten hours per week at the facility except the administrator, and to reimburse student loan expenses for newly hired and recently graduated registered nurses and licensed practical nurses, and training expenses for nursing assistants as deleted text begin defineddeleted text end new text begin specified new text end in section 144A.611, deleted text begin subdivisiondeleted text end new text begin subdivisionsnew text end 2new text begin and 4new text end , who are newly hired and have graduated within the last 12 months; and

(ii) the course of study is expected to lead to career advancement with the facility or in long-term care, including medical care interpreter services and social work; and

(2) to provide job-related training in English as a second language.

(b) All facilities may annually request a rate adjustment under this subdivision by submitting information to the commissioner on a schedule and in a form supplied by the commissioner. The commissioner shall allow a scholarship payment rate equal to the reported and allowable costs divided by resident days.

(c) In calculating the per diem under paragraph (b), the commissioner shall allow costs related to tuition, direct educational expenses, and reasonable costs as defined by the commissioner for child care costs and transportation expenses related to direct educational expenses.

(d) The rate increase under this subdivision is an optional rate add-on that the facility must request from the commissioner in a manner prescribed by the commissioner. The rate increase must be used for scholarships as specified in this subdivision.

(e) For instances in which a rate adjustment will be 15 cents or greater, nursing facilities that close beds during a rate year may request to have their scholarship adjustment under paragraph (b) recalculated by the commissioner for the remainder of the rate year to reflect the reduction in resident days compared to the cost report year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for costs incurred on or after October 1, 2016. new text end

Sec. 9.

new text begin REVISOR'S INSTRUCTION. new text end

new text begin (a) The revisor of statutes shall codify Laws 2015, chapter 71, article 7, section 55, as Minnesota Statutes, section 256B.0921. new text end

new text begin (b) The revisor of statutes, in consultation with the Department of Human Services, shall change the cross-references in Minnesota Rules, chapters 2960, 9503, and 9525, resulting from the repealer adopted in rules found at 40 State Register 179. The revisor may make technical and other necessary changes to sentence structure to preserve the meaning of the text. new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (b) is effective the day following final enactment. new text end

ARTICLE 19

HEALTH CARE

Section 1.

Minnesota Statutes 2015 Supplement, section 16A.724, subdivision 2, is amended to read:

Subd. 2.

Transfers.

(a) Notwithstanding section 295.581, to the extent available resources in the health care access fund exceed expenditures in that fund, effective for the biennium beginning July 1, 2007, the commissioner of management and budget shall transfer the excess funds from the health care access fund to the general fund on June 30 of each year, provided that the amount transferred in new text begin fiscal year 2016 shall not exceed $48,000,000, the amount in fiscal year 2017 shall not exceed $122,000,000, and the amount in new text end any fiscal biennium new text begin thereafter new text end shall not exceed deleted text begin $96,000,000deleted text end new text begin $244,000,000new text end . The purpose of this transfer is to meet the rate increase required under Laws 2003, First Special Session chapter 14, article 13C, section 2, subdivision 6.

(b) For fiscal years 2006 to 2011, MinnesotaCare shall be a forecasted program, and, if necessary, the commissioner shall reduce these transfers from the health care access fund to the general fund to meet annual MinnesotaCare expenditures or, if necessary, transfer sufficient funds from the general fund to the health care access fund to meet annual MinnesotaCare expenditures.

Sec. 2.

Minnesota Statutes 2014, section 62V.05, is amended by adding a subdivision to read:

new text begin Subd. 12. new text end

new text begin Reports on interagency agreements and intra-agency transfers. new text end

new text begin The MNsure Board shall provide quarterly reports to the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services policy and finance on: new text end

new text begin (1) interagency agreements or service-level agreements and any renewals or extensions of existing interagency or service-level agreements with a state department under section 15.01, state agency under section 15.012, or the Office of MN.IT Services, with a value of more than $100,000, or related agreements with the same department or agency with a cumulative value of more than $100,000; and new text end

new text begin (2) transfers of appropriations of more than $100,000 between accounts within or between agencies. new text end

new text begin The report must include the statutory citation authorizing the agreement, transfer or dollar amount, purpose, and effective date of the agreement, the duration of the agreement, and a copy of the agreement. new text end

Sec. 3.

Minnesota Statutes 2014, section 256.01, is amended by adding a subdivision to read:

new text begin Subd. 41. new text end

new text begin Reports on interagency agreements and intra-agency transfers. new text end

new text begin The commissioner of human services shall provide quarterly reports to the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services policy and finance on: new text end

new text begin (1) interagency agreements or service-level agreements and any renewals or extensions of existing interagency or service-level agreements with a state department under section 15.01, state agency under section 15.012, or the Office of MN.IT Services, with a value of more than $100,000, or related agreements with the same department or agency with a cumulative value of more than $100,000; and new text end

new text begin (2) transfers of appropriations of more than $100,000 between accounts within or between agencies. new text end

new text begin The report must include the statutory citation authorizing the agreement, transfer or dollar amount, purpose, and effective date of the agreement, the duration of the agreement, and a copy of the agreement. new text end

Sec. 4.

Minnesota Statutes 2014, section 256B.059, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section and sections 256B.058 and 256B.0595, the terms defined in this subdivision have the meanings given them.

(b) "Community spouse" means the spouse of an institutionalized spouse.

deleted text begin (c) "Spousal share" means one-half of the total value of all assets, to the extent that either the institutionalized spouse or the community spouse had an ownership interest at the time of the first continuous period of institutionalization. deleted text end

deleted text begin (d)deleted text end new text begin (c)new text end "Assets otherwise available to the community spouse" means assets individually or jointly owned by the community spouse, other than assets excluded by subdivision 5, paragraph (c).

deleted text begin (e)deleted text end new text begin (d)new text end "Community spouse asset allowance" is the value of assets that can be transferred under subdivision 3.

deleted text begin (f)deleted text end new text begin (e)new text end "Institutionalized spouse" means a person who is:

(1) in a hospital, nursing facility, or intermediate care facility for persons with developmental disabilities, or receiving home and community-based services under section 256B.0915, and is expected to remain in the facility or institution or receive the home and community-based services for at least 30 consecutive days; and

(2) married to a person who is not in a hospital, nursing facility, or intermediate care facility for persons with developmental disabilities, and is not receiving home and community-based services under section 256B.0915, 256B.092, or 256B.49.

deleted text begin (g)deleted text end new text begin (f)new text end "For the sole benefit of" means no other individual or entity can benefit in any way from the assets or income at the time of a transfer or at any time in the future.

deleted text begin (h)deleted text end new text begin (g)new text end "Continuous period of institutionalization" means a 30-consecutive-day period of time in which a person is expected to stay in a medical or long-term care facility, or receive home and community-based services that would qualify for coverage under the elderly waiver (EW) or alternative care (AC) programs. For a stay in a facility, the 30-consecutive-day period begins on the date of entry into a medical or long-term care facility. For receipt of home and community-based services, the 30-consecutive-day period begins on the date that the following conditions are met:

(1) the person is receiving services that meet the nursing facility level of care determined by a long-term care consultation;

(2) the person has received the long-term care consultation within the past 60 days;

(3) the services are paid by the EW program under section 256B.0915 or the AC program under section 256B.0913 or would qualify for payment under the EW or AC programs if the person were otherwise eligible for either program, and but for the receipt of such services the person would have resided in a nursing facility; and

(4) the services are provided by a licensed provider qualified to provide home and community-based services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2016. new text end

Sec. 5.

Minnesota Statutes 2014, section 256B.059, subdivision 2, is amended to read:

Subd. 2.

Assessment of deleted text begin spousal sharedeleted text end new text begin marital assetsnew text end .

deleted text begin At the beginning of the first continuous period of institutionalization of a person beginning on or after October 1, 1989, at the request of either the institutionalized spouse or the community spouse, ordeleted text end Upon application for medical assistancenew text begin benefits for an institutionalized spousenew text end , the total value of assets in which either the institutionalized spouse or the community spouse deleted text begin haddeleted text end new text begin hasnew text end an interest deleted text begin at the time of the first period of institutionalization of 30 days or moredeleted text end shall be assessed and deleted text begin documented and the spousal share shall be assessed and documenteddeleted text end new text begin the community spouse asset allowance shall be calculated as required in subdivision 3new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2016. new text end

Sec. 6.

Minnesota Statutes 2014, section 256B.059, subdivision 3, is amended to read:

Subd. 3.

Community spouse asset allowance.

An institutionalized spouse may transfer assets to the community spouse for the sole benefit of the community spouse. Except for increased amounts allowable under subdivision 4, the maximum amount of assets allowed to be transferred is the amount which, when added to the assets otherwise available to the community spouse, is deleted text begin as followsdeleted text end new text begin the greater ofnew text end :

deleted text begin (1) prior to July 1, 1994, the greater of: deleted text end

deleted text begin (i) $14,148; deleted text end

deleted text begin (ii) the lesser of the spousal share or $70,740; or deleted text end

deleted text begin (iii) the amount required by court order to be paid to the community spouse; and deleted text end

deleted text begin (2) for persons whose date of initial determination of eligibility for medical assistance following their first continuous period of institutionalization occurs on or after July 1, 1994, the greater of: deleted text end

deleted text begin (i) $20,000; deleted text end

deleted text begin (ii) the lesser of the spousal share or $70,740; or deleted text end

deleted text begin (iii) the amount required by court order to be paid to the community spouse. deleted text end

new text begin (1) $119,220 subject to an annual adjustment on January 1, 2017, and every January 1 thereafter, equal to the percentage increase in the Consumer Price Index for All Urban Consumers (all items; United States city average) between the two previous Septembers; or new text end

new text begin (2) the amount required by court order to be paid to the community spouse. new text end

If the assets available to the community spouse are already at the limit permissible under this section, or the higher limit attributable to increases under subdivision 4, no assets may be transferred from the institutionalized spouse to the community spouse. The transfer must be made as soon as practicable after the date the institutionalized spouse is determined eligible for medical assistance, or within the amount of time needed for any court order required for the transfer. deleted text begin On January 1, 1994, and every January 1 thereafter, the limits in this subdivision shall be adjusted by the same percentage change in the Consumer Price Index for All Urban Consumers (all items; United States city average) between the two previous Septembers. These adjustments shall also be applied to the limits in subdivision 5.deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2016. new text end

Sec. 7.

Minnesota Statutes 2015 Supplement, section 256B.059, subdivision 5, is amended to read:

Subd. 5.

Asset availability.

(a) At the time of initial determination of eligibility for medical assistance benefits deleted text begin following the first continuous period of institutionalization on or after October 1, 1989deleted text end new text begin for an institutionalized spousenew text end , assets considered available to the institutionalized spouse shall be the total value of all assets in which either spouse has an ownership interest, reduced by the deleted text begin followingdeleted text end amount deleted text begin for the community spouse:deleted text end new text begin available to the community spouse under subdivision 3.new text end

deleted text begin (1) prior to July 1, 1994, the greater of: deleted text end

deleted text begin (i) $14,148; deleted text end

deleted text begin (ii) the lesser of the spousal share or $70,740; or deleted text end

deleted text begin (iii) the amount required by court order to be paid to the community spouse; deleted text end

deleted text begin (2) for persons whose date of initial determination of eligibility for medical assistance following their first continuous period of institutionalization occurs on or after July 1, 1994, the greater of: deleted text end

deleted text begin (i) $20,000; deleted text end

deleted text begin (ii) the lesser of the spousal share or $70,740; or deleted text end

deleted text begin (iii) the amount required by court order to be paid to the community spouse. deleted text end

The value of assets transferred for the sole benefit of the community spouse under section 256B.0595, subdivision 4, in combination with other assets available to the community spouse under this section, cannot exceed the limit for the community spouse asset allowance determined under subdivision 3 or 4. Assets that exceed this allowance shall be considered available to the institutionalized spouse. If the community spouse asset allowance has been increased under subdivision 4, then the assets considered available to the institutionalized spouse under this subdivision shall be further reduced by the value of additional amounts allowed under subdivision 4.

(b) An institutionalized spouse may be found eligible for medical assistance even though assets in excess of the allowable amount are found to be available under paragraph (a) if the assets are owned jointly or individually by the community spouse, and the institutionalized spouse cannot use those assets to pay for the cost of care without the consent of the community spouse, and if:

(i) the institutionalized spouse assigns to the commissioner the right to support from the community spouse under section 256B.14, subdivision 3;

(ii) the institutionalized spouse lacks the ability to execute an assignment due to a physical or mental impairment; deleted text begin or deleted text end

(iii) the denial of eligibility would cause an imminent threat to the institutionalized spouse's health and well-beingdeleted text begin .deleted text end new text begin ; ornew text end

new text begin (iv) the assets in excess of the amount under paragraph (a) are assets owned by the community spouse, and the denial of eligibility would cause an undue hardship to the family due to the loss of retirement funds for the community spouse or funds protected for the postsecondary education of a child under 25 years of age. For purposes of this clause, only retirement assets held by the community spouse in a tax-deferred retirement account, including a defined benefit plan, defined contribution plan, an employer-sponsored individual retirement arrangement, or individually purchased individual retirement arrangement are protected, and are only protected until the community spouse is eligible to withdraw retirement funds from any or all accounts without penalty. For purposes of this clause, only funds in a plan designated under section 529 of the Internal Revenue Code on behalf of a child of either or both spouses who is under 25 years of age are protected. There shall not be an assignment of spousal support to the commissioner or a cause of action against the individual's spouse under section 256B.14, subdivision 3, for the funds in the protected retirement and college savings accounts. new text end

(c) After the month in which the institutionalized spouse is determined eligible for medical assistance, new text begin andnew text end during the continuous period of deleted text begin institutionalizationdeleted text end new text begin enrollmentnew text end , no assets of the community spouse are considered available to the institutionalized spouse, unless the institutionalized spouse has been found eligible under paragraph (b).

(d) Assets determined to be available to the institutionalized spouse under this section must be used for the health care or personal needs of the institutionalized spouse.

(e) For purposes of this section, assets do not include assets excluded under the Supplemental Security Income program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2016. The commissioner shall cease implementation of the amendment to paragraph (b), clause (iv), if the federal government denies the state plan amendment. The commissioner shall inform the revisor of statutes once federal approval is obtained or denied. new text end

Sec. 8.

Minnesota Statutes 2014, section 256B.059, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Temporary application. new text end

new text begin (a) During the period in which rules against spousal impoverishment are temporarily applied according to section 2404 of the Patient Protection Affordable Care Act, Public Law 111-148, as amended by the Health Care and Education Reconciliation Act of 2010, Public Law 111-152, this section applies to an institutionalized spouse: new text end

new text begin (1) applying for home and community-based waivers under sections 256B.092, 256B.093, and 256B.49 on or after June 1, 2016; new text end

new text begin (2) enrolled in home and community-based waivers under sections 256B.092, 256B.093, and 256B.49 before June 1, 2016; or new text end

new text begin (3) applying for services under section 256B.85 upon the effective date of that section. new text end

new text begin (b) During the applicable period of paragraph (a), the definition of "institutionalized spouse" in subdivision 1, paragraph (f), also includes an institutionalized spouse referenced in paragraph (a). new text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) Minnesota Statutes, section 256B.059, subdivision 6, paragraphs (a), clauses (1) and (3), and (b), are effective June 1, 2016. Minnesota Statutes, section 256B.059, subdivision 6, paragraph (a), clause (2), is effective March 1, 2017. new text end

new text begin (b) Minnesota Statutes, section 256B.059, subdivision 6, paragraph (a), clauses (1) and (2), expire upon notification to the commissioner of human services that the Center for Medicare and Medicaid Services approved the continuation of the deeming rules in effect on May 31, 2016, for the treatment of the assets of a community spouse. The commissioner of human services shall notify the revisor of statutes when notice is received. new text end

Sec. 9.

Minnesota Statutes 2014, section 256B.06, subdivision 4, is amended to read:

Subd. 4.

Citizenship requirements.

(a) Eligibility for medical assistance is limited to citizens of the United States, qualified noncitizens as defined in this subdivision, and other persons residing lawfully in the United States. Citizens or nationals of the United States must cooperate in obtaining satisfactory documentary evidence of citizenship or nationality according to the requirements of the federal Deficit Reduction Act of 2005, Public Law 109-171.

(b) "Qualified noncitizen" means a person who meets one of the following immigration criteria:

(1) admitted for lawful permanent residence according to United States Code, title 8;

(2) admitted to the United States as a refugee according to United States Code, title 8, section 1157;

(3) granted asylum according to United States Code, title 8, section 1158;

(4) granted withholding of deportation according to United States Code, title 8, section 1253(h);

(5) paroled for a period of at least one year according to United States Code, title 8, section 1182(d)(5);

(6) granted conditional entrant status according to United States Code, title 8, section 1153(a)(7);

(7) determined to be a battered noncitizen by the United States Attorney General according to the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, title V of the Omnibus Consolidated Appropriations Bill, Public Law 104-200;

(8) is a child of a noncitizen determined to be a battered noncitizen by the United States Attorney General according to the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, title V, of the Omnibus Consolidated Appropriations Bill, Public Law 104-200; or

(9) determined to be a Cuban or Haitian entrant as defined in section 501(e) of Public Law 96-422, the Refugee Education Assistance Act of 1980.

(c) All qualified noncitizens who were residing in the United States before August 22, 1996, who otherwise meet the eligibility requirements of this chapter, are eligible for medical assistance with federal financial participation.

(d) Beginning December 1, 1996, qualified noncitizens who entered the United States on or after August 22, 1996, and who otherwise meet the eligibility requirements of this chapter are eligible for medical assistance with federal participation for five years if they meet one of the following criteria:

(1) refugees admitted to the United States according to United States Code, title 8, section 1157;

(2) persons granted asylum according to United States Code, title 8, section 1158;

(3) persons granted withholding of deportation according to United States Code, title 8, section 1253(h);

(4) veterans of the United States armed forces with an honorable discharge for a reason other than noncitizen status, their spouses and unmarried minor dependent children; or

(5) persons on active duty in the United States armed forces, other than for training, their spouses and unmarried minor dependent children.

Beginning July 1, 2010, children and pregnant women who are noncitizens described in paragraph (b) or who are lawfully present in the United States as defined in Code of Federal Regulations, title 8, section 103.12, and who otherwise meet eligibility requirements of this chapter, are eligible for medical assistance with federal financial participation as provided by the federal Children's Health Insurance Program Reauthorization Act of 2009, Public Law 111-3.

(e) Nonimmigrants who otherwise meet the eligibility requirements of this chapter are eligible for the benefits as provided in paragraphs (f) to (h). For purposes of this subdivision, a "nonimmigrant" is a person in one of the classes listed in United States Code, title 8, section 1101(a)(15).

(f) Payment shall also be made for care and services that are furnished to noncitizens, regardless of immigration status, who otherwise meet the eligibility requirements of this chapter, if such care and services are necessary for the treatment of an emergency medical condition.

(g) For purposes of this subdivision, the term "emergency medical condition" means a medical condition that meets the requirements of United States Code, title 42, section 1396b(v).

(h)(1) Notwithstanding paragraph (g), services that are necessary for the treatment of an emergency medical condition are limited to the following:

(i) services delivered in an emergency room or by an ambulance service licensed under chapter 144E that are directly related to the treatment of an emergency medical condition;

(ii) services delivered in an inpatient hospital setting following admission from an emergency room or clinic for an acute emergency condition; and

(iii) follow-up services that are directly related to the original service provided to treat the emergency medical condition and are covered by the global payment made to the provider.

(2) Services for the treatment of emergency medical conditions do not include:

(i) services delivered in an emergency room or inpatient setting to treat a nonemergency condition;

(ii) organ transplants, stem cell transplants, and related care;

(iii) services for routine prenatal care;

(iv) continuing care, including long-term care, nursing facility services, home health care, adult day care, day training, or supportive living services;

(v) elective surgery;

(vi) outpatient prescription drugs, unless the drugs are administered or dispensed as part of an emergency room visit;

(vii) preventative health care and family planning services;

(viii) rehabilitation services;

(ix) physical, occupational, or speech therapy;

(x) transportation services;

(xi) case management;

(xii) prosthetics, orthotics, durable medical equipment, or medical supplies;

(xiii) dental services;

(xiv) hospice care;

(xv) audiology services and hearing aids;

(xvi) podiatry services;

(xvii) chiropractic services;

(xviii) immunizations;

(xix) vision services and eyeglasses;

(xx) waiver services;

(xxi) individualized education programs; or

(xxii) chemical dependency treatment.

(i) Pregnant noncitizens who are ineligible for federally funded medical assistance because of immigration status, are not covered by a group health plan or health insurance coverage according to Code of Federal Regulations, title 42, section 457.310, and who otherwise meet the eligibility requirements of this chapter, are eligible for medical assistance through the period of pregnancy, including labor and delivery, and 60 days postpartum, to the extent federal funds are available under title XXI of the Social Security Act, and the state children's health insurance program.

(j) Beginning October 1, 2003, persons who are receiving care and rehabilitation services from a nonprofit center established to serve victims of torture and are otherwise ineligible for medical assistance under this chapter are eligible for medical assistance without federal financial participation. These individuals are eligible only for the period during which they are receiving services from the center. Individuals eligible under this paragraph shall not be required to participate in prepaid medical assistance. The nonprofit center referenced under this paragraph may establish itself as a provider of mental health targeted case management services through a county contract under section 256.0112, subdivision 6. If the nonprofit center is unable to secure a contract with a lead county in its service area, then, notwithstanding the requirements of section 256B.0625, subdivision 20, the commissioner may negotiate a contract with the nonprofit center for provision of mental health targeted case management services. When serving clients who are not the financial responsibility of their contracted lead county, the nonprofit center must gain the concurrence of the county of financial responsibility prior to providing mental health targeted case management services for those clients.

(k) Notwithstanding paragraph (h), clause (2), the following services are covered as emergency medical conditions under paragraph (f) except where coverage is prohibited under federal lawnew text begin for services under clauses (1) and (2)new text end :

(1) dialysis services provided in a hospital or freestanding dialysis facility; deleted text begin anddeleted text end

(2) surgery and the administration of chemotherapy, radiation, and related services necessary to treat cancer if the recipient has a cancer diagnosis that is not in remission and requires surgery, chemotherapy, or radiation treatmentnew text begin ; andnew text end

new text begin (3) kidney transplant if the person has been diagnosed with end stage renal disease, is currently receiving dialysis services, and is a potential candidate for a kidney transplantnew text end .

(l) Effective July 1, 2013, recipients of emergency medical assistance under this subdivision are eligible for coverage of the elderly waiver services provided under section 256B.0915, and coverage of rehabilitative services provided in a nursing facility. The age limit for elderly waiver services does not apply. In order to qualify for coverage, a recipient of emergency medical assistance is subject to the assessment and reassessment requirements of section 256B.0911. Initial and continued enrollment under this paragraph is subject to the limits of available funding.

Sec. 10.

Minnesota Statutes 2015 Supplement, section 256B.0625, subdivision 17a, is amended to read:

Subd. 17a.

Payment for ambulance services.

new text begin (a) new text end Medical assistance covers ambulance services. Providers shall bill ambulance services according to Medicare criteria. Nonemergency ambulance services shall not be paid as emergencies. Effective for services rendered on or after July 1, 2001, medical assistance payments for ambulance services shall be paid at the Medicare reimbursement rate or at the medical assistance payment rate in effect on July 1, 2000, whichever is greater.

new text begin (b) Effective for services provided on or after July 1, 2016, medical assistance payment rates for ambulance services identified in this paragraph are increased by five percent. Capitation payments made to managed care plans and county-based purchasing plans for ambulance services provided on or after January 1, 2017, shall be increased to reflect this rate increase. The increased rate described in this paragraph applies to ambulance service providers whose base of operations as defined in section 144E.10 is located: new text end

new text begin (1) outside the metropolitan counties listed in section 473.121, subdivision 4, and outside the cities of Duluth, Mankato, Moorhead, St. Cloud, and Rochester; or new text end

new text begin (2) within a municipality with a population of less than 1,000. new text end

Sec. 11.

Minnesota Statutes 2014, section 256B.0625, subdivision 30, is amended to read:

Subd. 30.

Other clinic services.

(a) Medical assistance covers rural health clinic services, federally qualified health center services, nonprofit community health clinic services, and public health clinic services. Rural health clinic services and federally qualified health center services mean services defined in United States Code, title 42, section 1396d(a)(2)(B) and (C). Payment for rural health clinic and federally qualified health center services shall be made according to applicable federal law and regulation.

(b) A federally qualified health center that is beginning initial operation shall submit an estimate of budgeted costs and visits for the initial reporting period in the form and detail required by the commissioner. A federally qualified health center that is already in operation shall submit an initial report using actual costs and visits for the initial reporting period. Within 90 days of the end of its reporting period, a federally qualified health center shall submit, in the form and detail required by the commissioner, a report of its operations, including allowable costs actually incurred for the period and the actual number of visits for services furnished during the period, and other information required by the commissioner. Federally qualified health centers that file Medicare cost reports shall provide the commissioner with a copy of the most recent Medicare cost report filed with the Medicare program intermediary for the reporting year which support the costs claimed on their cost report to the state.

(c) In order to continue cost-based payment under the medical assistance program according to paragraphs (a) and (b), a federally qualified health center or rural health clinic must apply for designation as an essential community provider within six months of final adoption of rules by the Department of Health according to section 62Q.19, subdivision 7. For those federally qualified health centers and rural health clinics that have applied for essential community provider status within the six-month time prescribed, medical assistance payments will continue to be made according to paragraphs (a) and (b) for the first three years after application. For federally qualified health centers and rural health clinics that either do not apply within the time specified above or who have had essential community provider status for three years, medical assistance payments for health services provided by these entities shall be according to the same rates and conditions applicable to the same service provided by health care providers that are not federally qualified health centers or rural health clinics.

(d) Effective July 1, 1999, the provisions of paragraph (c) requiring a federally qualified health center or a rural health clinic to make application for an essential community provider designation in order to have cost-based payments made according to paragraphs (a) and (b) no longer apply.

(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b) shall be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.

(f) Effective January 1, 2001, each federally qualified health center and rural health clinic may elect to be paid either under the prospective payment system established in United States Code, title 42, section 1396a(aa), or under an alternative payment methodology consistent with the requirements of United States Code, title 42, section 1396a(aa), and approved by the Centers for Medicare and Medicaid Services. The alternative payment methodology shall be 100 percent of cost as determined according to Medicare cost principles.

(g) For purposes of this section, "nonprofit community clinic" is a clinic that:

(1) has nonprofit status as specified in chapter 317A;

(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);

(3) is established to provide health services to low-income population groups, uninsured, high-risk and special needs populations, underserved and other special needs populations;

(4) employs professional staff at least one-half of which are familiar with the cultural background of their clients;

(5) charges for services on a sliding fee scale designed to provide assistance to low-income clients based on current poverty income guidelines and family size; and

(6) does not restrict access or services because of a client's financial limitations or public assistance status and provides no-cost care as needed.

(h) Effective for services provided on or after January 1, 2015, all claims for payment of clinic services provided by federally qualified health centers and rural health clinics shall be paid by the commissioner. The commissioner shall determine the most feasible method for paying claims from the following options:

(1) federally qualified health centers and rural health clinics submit claims directly to the commissioner for payment, and the commissioner provides claims information for recipients enrolled in a managed care or county-based purchasing plan to the plan, on a regular basis; or

(2) federally qualified health centers and rural health clinics submit claims for recipients enrolled in a managed care or county-based purchasing plan to the plan, and those claims are submitted by the plan to the commissioner for payment to the clinic.

(i) For clinic services provided prior to January 1, 2015, the commissioner shall calculate and pay monthly the proposed managed care supplemental payments to clinics, and clinics shall conduct a timely review of the payment calculation data in order to finalize all supplemental payments in accordance with federal law. Any issues arising from a clinic's review must be reported to the commissioner by January 1, 2017. Upon final agreement between the commissioner and a clinic on issues identified under this subdivision, and in accordance with United States Code, title 42, section 1396a(bb), no supplemental payments for managed care plan or county-based purchasing plan claims for services provided prior to January 1, 2015, shall be made after June 30, 2017. If the commissioner and clinics are unable to resolve issues under this subdivision, the parties shall submit the dispute to the arbitration process under section 14.57.

new text begin (j) The commissioner shall seek a federal waiver, authorized under section 1115 of the Social Security Act, to obtain federal financial participation at the 100 percent federal matching percentage available to facilities of the Indian Health Service or tribal organization in accordance with section 1905(b) of the Social Security Act for expenditures made to organizations dually certified under Title V of the Indian Health Care Improvement Act, Public Law 94-437, and as a federally qualified health center under paragraph (a) that provides services to American Indian and Alaskan Native individuals eligible for services under this subdivision. new text end

Sec. 12.

Minnesota Statutes 2014, section 256B.0625, subdivision 34, is amended to read:

Subd. 34.

Indian health services facilities.

new text begin (a) new text end Medical assistance payments and MinnesotaCare payments to facilities of the Indian health service and facilities operated by a tribe or tribal organization under funding authorized by United States Code, title 25, sections 450f to 450n, or title III of the Indian Self-Determination and Education Assistance Act, Public Law 93-638, for enrollees who are eligible for federal financial participation, shall be at the option of the facility in accordance with the rate published by the United States Assistant Secretary for Health under the authority of United States Code, title 42, sections 248(a) and 249(b). deleted text begin General assistance medical care payments to facilities of the Indian health services and facilities operated by a tribe or tribal organization for the provision of outpatient medical care services billed after June 30, 1990, must be in accordance with the general assistance medical care rates paid for the same services when provided in a facility other than a facility of the Indian health service or a facility operated by a tribe or tribal organization.deleted text end MinnesotaCare payments for enrollees who are not eligible for federal financial participation at facilities of the Indian health service and facilities operated by a tribe or tribal organization for the provision of outpatient medical services must be in accordance with the medical assistance rates paid for the same services when provided in a facility other than a facility of the Indian health service or a facility operated by a tribe or tribal organization.

new text begin (b) Effective upon federal approval, the medical assistance payments to a dually certified facility as defined in subdivision 30, paragraph (j), shall be the encounter rate described in paragraph (a) or a rate that is substantially equivalent for services provided to American Indians and Alaskan Native populations. The rate established under this paragraph for dually certified facilities shall not apply to MinnesotaCare payments. new text end

Sec. 13.

Minnesota Statutes 2014, section 256B.0625, is amended by adding a subdivision to read:

new text begin Subd. 60a. new text end

new text begin Community emergency medical technician services. new text end

new text begin (a) Medical assistance covers services provided by a community emergency medical technician (CEMT) who is certified under section 144E.275, subdivision 7, when the services are provided in accordance with this subdivision. new text end

new text begin (b) A CEMT may provide a posthospital discharge visit when ordered by a treating physician. The posthospital discharge visit includes: new text end

new text begin (1) verbal or visual reminders of discharge orders; new text end

new text begin (2) recording and reporting of vital signs to the patient's primary care provider; new text end

new text begin (3) medication access confirmation; new text end

new text begin (4) food access confirmation; and new text end

new text begin (5) identification of home hazards. new text end

new text begin (c) An individual who has repeat ambulance calls due to falls, has been discharged from a nursing home, or has been identified by the individual's primary care provider as at risk for nursing home placement, may receive a safety evaluation visit from a CEMT when ordered by a primary care provider in accordance with the individual's care plan. A safety evaluation visit includes: new text end

new text begin (1) medication access confirmation; new text end

new text begin (2) food access confirmation; and new text end

new text begin (3) identification of home hazards. new text end

new text begin (d) A CEMT shall be paid at $9.75 per 15-minute increment. A safety evaluation visit may not be billed for the same day as a posthospital discharge visit for the same individual. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2017, or upon federal approval, whichever is later. The commissioner of human services shall notify the revisor of statutes when federal approval is obtained. new text end

Sec. 14.

Minnesota Statutes 2014, section 256B.15, subdivision 1, is amended to read:

Subdivision 1.

Policy and applicability.

(a) It is the policy of this state that individuals or couples, either or both of whom participate in the medical assistance program, use their own assets to pay their share of the deleted text begin totaldeleted text end cost of their care during or after their enrollment in the program according to applicable federal law and the laws of this state. The following provisions apply:

(1) subdivisions 1c to 1k shall not apply to claims arising under this section which are presented under section 525.313;

(2) the provisions of subdivisions 1c to 1k expanding the interests included in an estate for purposes of recovery under this section give effect to the provisions of United States Code, title 42, section 1396p, governing recoveries, but do not give rise to any express or implied liens in favor of any other parties not named in these provisions;

(3) the continuation of a recipient's life estate or joint tenancy interest in real property after the recipient's death for the purpose of recovering medical assistance under this section modifies common law principles holding that these interests terminate on the death of the holder;

(4) all laws, rules, and regulations governing or involved with a recovery of medical assistance shall be liberally construed to accomplish their intended purposes;

(5) a deceased recipient's life estate and joint tenancy interests continued under this section shall be owned by the remainderpersons or surviving joint tenants as their interests may appear on the date of the recipient's death. They shall not be merged into the remainder interest or the interests of the surviving joint tenants by reason of ownership. They shall be subject to the provisions of this section. Any conveyance, transfer, sale, assignment, or encumbrance by a remainderperson, a surviving joint tenant, or their heirs, successors, and assigns shall be deemed to include all of their interest in the deceased recipient's life estate or joint tenancy interest continued under this section; and

(6) the provisions of subdivisions 1c to 1k continuing a recipient's joint tenancy interests in real property after the recipient's death do not apply to a homestead owned of record, on the date the recipient dies, by the recipient and the recipient's spouse as joint tenants with a right of survivorship. Homestead means the real property occupied by the surviving joint tenant spouse as their sole residence on the date the recipient dies and classified and taxed to the recipient and surviving joint tenant spouse as homestead property for property tax purposes in the calendar year in which the recipient dies. For purposes of this exemption, real property the recipient and their surviving joint tenant spouse purchase solely with the proceeds from the sale of their prior homestead, own of record as joint tenants, and qualify as homestead property under section 273.124 in the calendar year in which the recipient dies and prior to the recipient's death shall be deemed to be real property classified and taxed to the recipient and their surviving joint tenant spouse as homestead property in the calendar year in which the recipient dies. The surviving spouse, or any person with personal knowledge of the facts, may provide an affidavit describing the homestead property affected by this clause and stating facts showing compliance with this clause. The affidavit shall be prima facie evidence of the facts it states.

(b) For purposes of this section, "medical assistance" includes the medical assistance program under this chapter and the general assistance medical care program under chapter 256D and alternative care for nonmedical assistance recipients under section 256B.0913.

(c) For purposes of this section, beginning January 1, 2010, "medical assistance" does not include Medicare cost-sharing benefits in accordance with United States Code, title 42, section 1396p.

(d) All provisions in this subdivision, and subdivisions 1d, 1f, 1g, 1h, 1i, and 1j, related to the continuation of a recipient's life estate or joint tenancy interests in real property after the recipient's death for the purpose of recovering medical assistance, are effective only for life estates and joint tenancy interests established on or after August 1, 2003. For purposes of this paragraph, medical assistance does not include alternative care.

Sec. 15.

Minnesota Statutes 2014, section 256B.15, subdivision 1a, is amended to read:

Subd. 1a.

Estates subject to claims.

(a) If a person receives deleted text begin anydeleted text end medical assistance hereunder, on the person's death, if single, or on the death of the survivor of a married couple, either or both of whom received medical assistance, or as otherwise provided for in this section, the deleted text begin totaldeleted text end amount paid for medical assistance deleted text begin rendereddeleted text end new text begin as limited under subdivision 2 new text end for the person and spouse shall be filed as a claim against the estate of the person or the estate of the surviving spouse in the court having jurisdiction to probate the estate or to issue a decree of descent according to sections 525.31 to 525.313.

(b) For the purposes of this section, the person's estate must consist of:

(1) the person's probate estate;

(2) all of the person's interests or proceeds of those interests in real property the person owned as a life tenant or as a joint tenant with a right of survivorship at the time of the person's death;

(3) all of the person's interests or proceeds of those interests in securities the person owned in beneficiary form as provided under sections 524.6-301 to 524.6-311 at the time of the person's death, to the extent the interests or proceeds of those interests become part of the probate estate under section 524.6-307;

(4) all of the person's interests in joint accounts, multiple-party accounts, and pay-on-death accounts, brokerage accounts, investment accounts, or the proceeds of those accounts, as provided under sections 524.6-201 to 524.6-214 at the time of the person's death to the extent the interests become part of the probate estate under section 524.6-207; and

(5) assets conveyed to a survivor, heir, or assign of the person through survivorship, living trust, or other arrangements.

(c) For the purpose of this section and recovery in a surviving spouse's estate for medical assistance paid for a predeceased spouse, the estate must consist of all of the legal title and interests the deceased individual's predeceased spouse had in jointly owned or marital property at the time of the spouse's death, as defined in subdivision 2b, and the proceeds of those interests, that passed to the deceased individual or another individual, a survivor, an heir, or an assign of the predeceased spouse through a joint tenancy, tenancy in common, survivorship, life estate, living trust, or other arrangement. A deceased recipient who, at death, owned the property jointly with the surviving spouse shall have an interest in the entire property.

(d) For the purpose of recovery in a single person's estate or the estate of a survivor of a married couple, "other arrangement" includes any other means by which title to all or any part of the jointly owned or marital property or interest passed from the predeceased spouse to another including, but not limited to, transfers between spouses which are permitted, prohibited, or penalized for purposes of medical assistance.

(e) A claim shall be filed if medical assistance was rendered for either or both persons under one of the following circumstances:

(1) the person was over 55 years of age, and received services under this chapter new text begin prior to January 1, 2014new text end ;

(2) the person resided in a medical institution for six months or longer, received services under this chapter, and, at the time of institutionalization or application for medical assistance, whichever is later, the person could not have reasonably been expected to be discharged and returned home, as certified in writing by the person's treating physician. For purposes of this section only, a "medical institution" means a skilled nursing facility, intermediate care facility, intermediate care facility for persons with developmental disabilities, nursing facility, or inpatient hospital; deleted text begin ordeleted text end

(3) the person received general assistance medical care services under chapter 256Ddeleted text begin .deleted text end new text begin ; ornew text end

new text begin (4) the person was 55 years of age or older and received medical assistance services on or after January 1, 2014, that consisted of nursing facility services, home and community-based services, or related hospital and prescription drug benefits. new text end

(f) The claim shall be considered an expense of the last illness of the decedent for the purpose of section 524.3-805. Notwithstanding any law or rule to the contrary, a state or county agency with a claim under this section must be a creditor under section 524.6-307. Any statute of limitations that purports to limit any county agency or the state agency, or both, to recover for medical assistance granted hereunder shall not apply to any claim made hereunder for reimbursement for any medical assistance granted hereunder. Notice of the claim shall be given to all heirs and devisees of the decedent, and to other persons with an ownership interest in the real property owned by the decedent at the time of the decedent's death, whose identity can be ascertained with reasonable diligence. The notice must include procedures and instructions for making an application for a hardship waiver under subdivision 5; time frames for submitting an application and determination; and information regarding appeal rights and procedures. Counties are entitled to one-half of the nonfederal share of medical assistance collections from estates that are directly attributable to county effort. Counties are entitled to ten percent of the collections for alternative care directly attributable to county effort.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon federal approval and applies retroactively to services rendered on or after January 1, 2014, and to claims not paid prior to July 1, 2016. The commissioner of human services shall notify the revisor of statutes when federal approval is obtained. new text end

Sec. 16.

Minnesota Statutes 2014, section 256B.15, subdivision 2, is amended to read:

Subd. 2.

Limitations on claims.

new text begin (a) For services rendered prior to January 1, 2014, new text end the claim shall include only the total amount of medical assistance rendered after age 55 or during a period of institutionalization described in subdivision 1a, paragraph (e), and the total amount of general assistance medical care rendered, and shall not include interest.

new text begin (b) For services rendered on or after January 1, 2014, the claim shall include only: new text end

new text begin (1) the amount of medical assistance rendered to recipients 55 years of age or older and that consisted of nursing facility services, home and community-based services, and related hospital and prescription drug services; and new text end

new text begin (2) the total amount of medical assistance rendered during a period of institutionalization described in subdivision 1a, paragraph (e), clause (2). new text end

new text begin The claim shall not include interest. For the purposes of this section, "home and community-based services" has the same meaning it has when used in United States Code, title 42, section 1396p(b)(1)(B)(i), and includes the alternative care program under section 256B.0913. new text end

new text begin (c) new text end Claims that have been allowed but not paid shall bear interest according to section 524.3-806, paragraph (d). A claim against the estate of a surviving spouse who did not receive medical assistance, for medical assistance rendered for the predeceased spouse, shall be payable from the full value of all of the predeceased spouse's assets and interests which are part of the surviving spouse's estate under subdivisions 1a and 2b. Recovery of medical assistance expenses in the nonrecipient surviving spouse's estate is limited to the value of the assets of the estate that were marital property or jointly owned property at any time during the marriage. The claim is not payable from the value of assets or proceeds of assets in the estate attributable to a predeceased spouse whom the individual married after the death of the predeceased recipient spouse for whom the claim is filed or from assets and the proceeds of assets in the estate which the nonrecipient decedent spouse acquired with assets which were not marital property or jointly owned property after the death of the predeceased recipient spouse. Claims for alternative care shall be net of all premiums paid under section 256B.0913, subdivision 12, on or after July 1, 2003, and shall be limited to services provided on or after July 1, 2003. Claims against marital property shall be limited to claims against recipients who died on or after July 1, 2009.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon federal approval and applies retroactively to services rendered on or after January 1, 2014, and to claims not paid prior to July 1, 2016. The commissioner of human services shall notify the revisor of statutes when federal approval is obtained. new text end

Sec. 17.

Minnesota Statutes 2015 Supplement, section 256B.76, subdivision 2, is amended to read:

Subd. 2.

Dental reimbursement.

(a) Effective for services rendered on or after October 1, 1992, the commissioner shall make payments for dental services as follows:

(1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 30, 1992; and

(2) dental rates shall be converted from the 50th percentile of 1982 to the 50th percentile of 1989, less the percent in aggregate necessary to equal the above increases.

(b) Beginning October 1, 1999, the payment for tooth sealants and fluoride treatments shall be the lower of (1) submitted charge, or (2) 80 percent of median 1997 charges.

(c) Effective for services rendered on or after January 1, 2000, payment rates for dental services shall be increased by three percent over the rates in effect on December 31, 1999.

(d) Effective for services provided on or after January 1, 2002, payment for diagnostic examinations and dental x-rays provided to children under age 21 shall be the lower of (1) the submitted charge, or (2) 85 percent of median 1999 charges.

(e) The increases listed in paragraphs (b) and (c) shall be implemented January 1, 2000, for managed care.

(f) Effective for dental services rendered on or after October 1, 2010, by a state-operated dental clinic, payment shall be paid on a reasonable cost basis that is based on the Medicare principles of reimbursement. This payment shall be effective for services rendered on or after January 1, 2011, to recipients enrolled in managed care plans or county-based purchasing plans.

(g) Beginning in fiscal year 2011, if the payments to state-operated dental clinics in paragraph (f), including state and federal shares, are less than $1,850,000 per fiscal year, a supplemental state payment equal to the difference between the total payments in paragraph (f) and $1,850,000 shall be paid from the general fund to state-operated services for the operation of the dental clinics.

(h) If the cost-based payment system for state-operated dental clinics described in paragraph (f) does not receive federal approval, then state-operated dental clinics shall be designated as critical access dental providers under subdivision 4, paragraph (b), and shall receive the critical access dental reimbursement rate as described under subdivision 4, paragraph (a).

(i) Effective for services rendered on or after September 1, 2011, through June 30, 2013, payment rates for dental services shall be reduced by three percent. This reduction does not apply to state-operated dental clinics in paragraph (f).

(j) Effective for services rendered on or after January 1, 2014, payment rates for dental services shall be increased by five percent from the rates in effect on December 31, 2013. This increase does not apply to state-operated dental clinics in paragraph (f), federally qualified health centers, rural health centers, and Indian health services. Effective January 1, 2014, payments made to managed care plans and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect the payment increase described in this paragraph.

(k) Effective for services rendered on or after July 1, 2015,new text begin through December 31, 2016,new text end the commissioner shall increase payment rates for services furnished by dental providers located outside of the seven-county metropolitan area by the maximum percentage possible above the rates in effect on June 30, 2015, while remaining within the limits of funding appropriated for this purpose. This increase does not apply to state-operated dental clinics in paragraph (f), federally qualified health centers, rural health centers, and Indian health services. Effective January 1, 2016,new text begin through December 31, 2016,new text end payments to managed care plans and county-based purchasing plans under sections 256B.69 and 256B.692 shall reflect the payment increase described in this paragraph. The commissioner shall require managed care and county-based purchasing plans to pass on the full amount of the increase, in the form of higher payment rates to dental providers located outside of the seven-county metropolitan area.

new text begin (l) Effective for services provided on or after January 1, 2017, the commissioner shall increase payment rates by 9.65 percent for dental services provided outside of the seven-county metropolitan area. This increase does not apply to state-operated dental clinics in paragraph (f), federally qualified health centers, rural health centers, or Indian health services. Effective January 1, 2017, payments to managed care plans and county-based purchasing plans under sections 256B.69 and 256B.692 shall reflect the payment increase described in this paragraph. new text end

Sec. 18.

Minnesota Statutes 2015 Supplement, section 256B.76, subdivision 4, is amended to read:

Subd. 4.

Critical access dental providers.

(a) deleted text begin Effective for dental services rendered on or after January 1, 2002,deleted text end The commissioner shall increase reimbursements to dentists and dental clinics deemed by the commissioner to be critical access dental providers. For dental services rendered on or after July 1, deleted text begin 2007deleted text end new text begin 2016new text end , the commissioner shall increase reimbursement by deleted text begin 35deleted text end new text begin 37.5new text end percent above the reimbursement rate that would otherwise be paid to the critical access dental providernew text begin , except as specified under paragraph (b)new text end . The commissioner shall pay the managed care plans and county-based purchasing plans in amounts sufficient to reflect increased reimbursements to critical access dental providers as approved by the commissioner.

(b) new text begin For dental services rendered on or after July 1, 2016, by a dental clinic or dental group that meets the critical access dental provider designation under paragraph (d), clause (4), and is owned and operated by a health maintenance organization licensed under chapter 62D, the commissioner shall increase reimbursement by 35 percent above the reimbursement rate that would otherwise be paid to the critical access provider.new text end

new text begin (c) Critical access dental payments made under paragraph (a) or (b) for dental services provided by a critical access dental provider to an enrollee of a managed care plan or county-based purchasing plan must not reflect any capitated payments or cost-based payments from the managed care plan or county-based purchasing plan. The managed care plan or county-based purchasing plan must base the additional critical access dental payment on the amount that would have been paid for that service had the dental provider been paid according to the managed care plan or county-based purchasing plan's fee schedule that applies to dental providers that are not paid under a capitated payment or cost-based payment.new text end

new text begin (d) new text end The commissioner shall designate the following dentists and dental clinics as critical access dental providers:

(1) nonprofit community clinics that:

(i) have nonprofit status in accordance with chapter 317A;

(ii) have tax exempt status in accordance with the Internal Revenue Code, section 501(c)(3);

(iii) are established to provide oral health services to patients who are low income, uninsured, have special needs, and are underserved;

(iv) have professional staff familiar with the cultural background of the clinic's patients;

(v) charge for services on a sliding fee scale designed to provide assistance to low-income patients based on current poverty income guidelines and family size;

(vi) do not restrict access or services because of a patient's financial limitations or public assistance status; and

(vii) have free care available as needed;

(2) federally qualified health centers, rural health clinics, and public health clinics;

(3) deleted text begin city or countydeleted text end new text begin hospital-based dental clinicsnew text end owned and operated deleted text begin hospital-based dental clinicsdeleted text end new text begin by a city, county, or former state hospital as defined in section 62Q.19, subdivision 1, paragraph (a), clause (4)new text end ;

(4) a dental clinic or dental group owned and operated by a nonprofit corporation in accordance with chapter 317A with more than 10,000 patient encounters per year with patients who are uninsured or covered by medical assistance or MinnesotaCare;

(5) a dental clinic owned and operated by the University of Minnesota or the Minnesota State Colleges and Universities system; and

(6) private practicing dentists if:

(i) the dentist's office is located within deleted text begin a health professional shortage area as defined under Code of Federal Regulations, title 42, part 5, and United States Code, title 42, section 254E;deleted text end

deleted text begin (ii) moredeleted text end new text begin the seven-county metropolitan area and morenew text end than 50 percent of the dentist's patient encounters per year are with patients who are uninsured or covered by medical assistance or MinnesotaCare; deleted text begin anddeleted text end new text begin ornew text end

deleted text begin (iii) the level of service provided by the dentist is critical to maintaining adequate levels of patient access within the service area in which the dentist operates. deleted text end

new text begin (ii) the dentist's office is located outside the seven-county metropolitan area and more than 25 percent of the dentist's patient encounters per year are with patients who are uninsured or covered by medical assistance or MinnesotaCare. new text end

Sec. 19.

Minnesota Statutes 2015 Supplement, section 256B.766, is amended to read:

256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.

(a) Effective for services provided on or after July 1, 2009, total payments for basic care services, shall be reduced by three percent, except that for the period July 1, 2009, through June 30, 2011, total payments shall be reduced by 4.5 percent for the medical assistance and general assistance medical care programs, prior to third-party liability and spenddown calculation. Effective July 1, 2010, the commissioner shall classify physical therapy services, occupational therapy services, and speech-language pathology and related services as basic care services. The reduction in this paragraph shall apply to physical therapy services, occupational therapy services, and speech-language pathology and related services provided on or after July 1, 2010.

(b) Payments made to managed care plans and county-based purchasing plans shall be reduced for services provided on or after October 1, 2009, to reflect the reduction effective July 1, 2009, and payments made to the plans shall be reduced effective October 1, 2010, to reflect the reduction effective July 1, 2010.

(c) Effective for services provided on or after September 1, 2011, through June 30, 2013, total payments for outpatient hospital facility fees shall be reduced by five percent from the rates in effect on August 31, 2011.

(d) Effective for services provided on or after September 1, 2011, through June 30, 2013, total payments for ambulatory surgery centers facility fees, medical supplies and durable medical equipment not subject to a volume purchase contract, prosthetics and orthotics, renal dialysis services, laboratory services, public health nursing services, physical therapy services, occupational therapy services, speech therapy services, eyeglasses not subject to a volume purchase contract, hearing aids not subject to a volume purchase contract, and anesthesia services shall be reduced by three percent from the rates in effect on August 31, 2011.

(e) Effective for services provided on or after September 1, 2014, payments for ambulatory surgery centers facility fees, hospice services, renal dialysis services, laboratory services, public health nursing services, eyeglasses not subject to a volume purchase contract, and hearing aids not subject to a volume purchase contract shall be increased by three percent and payments for outpatient hospital facility fees shall be increased by three percent. Payments made to managed care plans and county-based purchasing plans shall not be adjusted to reflect payments under this paragraph.

(f) Payments for medical supplies and durable medical equipment not subject to a volume purchase contract, and prosthetics and orthotics, provided on or after July 1, 2014, through June 30, 2015, shall be decreased by .33 percent. Payments for medical supplies and durable medical equipment not subject to a volume purchase contract, and prosthetics and orthotics, provided on or after July 1, 2015, shall be increased by three percent from the rates as determined under deleted text begin paragraphdeleted text end new text begin paragraphsnew text end (i)new text begin and (j)new text end .

(g) Effective for services provided on or after July 1, 2015, payments for outpatient hospital facility fees, medical supplies and durable medical equipment not subject to a volume purchase contract, prosthetics and orthotics, and laboratory services to a hospital meeting the criteria specified in section 62Q.19, subdivision 1, paragraph (a), clause (4), shall be increased by 90 percent from the rates in effect on June 30, 2015. Payments made to managed care plans and county-based purchasing plans shall not be adjusted to reflect payments under this paragraph.

(h) This section does not apply to physician and professional services, inpatient hospital services, family planning services, mental health services, dental services, prescription drugs, medical transportation, federally qualified health centers, rural health centers, Indian health services, and Medicare cost-sharing.

(i) Effective new text begin for services provided on or after new text end July 1, 2015, the deleted text begin medical assistance payment rate for durable medical equipment, prosthetics, orthotics, or supplies shall be restored to the January 1, 2008, medical assistance fee schedule, updated to include subsequent rate increases in the Medicare and medical assistance fee schedules, and includingdeleted text end new text begin following categories of durable medical equipment shall benew text end individually priced items deleted text begin for the following categoriesdeleted text end : enteral nutrition and supplies, customized and other specialized tracheostomy tubes and supplies, electric patient lifts, and durable medical equipment repair and service. This paragraph does not apply to medical supplies and durable medical equipment subject to a volume purchase contract, products subject to the preferred diabetic testing supply program, and items provided to dually eligible recipients when Medicare is the primary payer for the item.new text begin The commissioner shall not apply any medical assistance rate reductions to durable medical equipment as a result of Medicare competitive bidding.new text end

new text begin (j) Effective for services provided on or after July 1, 2015, medical assistance payment rates for durable medical equipment, prosthetics, orthotics, or supplies shall be increased as follows: new text end

new text begin (1) payment rates for durable medical equipment, prosthetics, orthotics, or supplies that were subject to the Medicare competitive bid that took effect in January of 2009 shall be increased by 9.5 percent; and new text end

new text begin (2) payment rates for durable medical equipment, prosthetics, orthotics, or supplies on the medical assistance fee schedule, whether or not subject to the Medicare competitive bid that took effect in January of 2009, shall be increased by 2.94 percent, with this increase being applied after calculation of any increased payment rate under clause (1). new text end

new text begin This paragraph does not apply to medical supplies and durable medical equipment subject to a volume purchase contract, products subject to the preferred diabetic testing supply program, items provided to dually eligible recipients when Medicare is the primary payer for the item, and individually priced items identified in paragraph (i). Payments made to managed care plans and county-based purchasing plans shall not be adjusted to reflect the rate increases in this paragraph. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2015. new text end

Sec. 20.

Minnesota Statutes 2014, section 256L.01, subdivision 1a, is amended to read:

Subd. 1a.

Child.

"Child" means an individual under 21 years of agedeleted text begin , including the unborn child of a pregnant woman, an emancipated minor, and an emancipated minor's spousedeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 21.

Minnesota Statutes 2015 Supplement, section 256L.01, subdivision 5, is amended to read:

Subd. 5.

Income.

"Income" has the meaning given for modified adjusted gross income, as defined in Code of Federal Regulations, title 26, section 1.36B-1, and means a household's deleted text begin projected annual income for the applicable tax yeardeleted text end new text begin current income, or if income fluctuates month to month, the income for the 12-month eligibility periodnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017. new text end

Sec. 22.

Minnesota Statutes 2014, section 256L.04, subdivision 1a, is amended to read:

Subd. 1a.

Social Security number required.

deleted text begin (a)deleted text end Individuals and families applying for MinnesotaCare coverage must provide a Social Security numbernew text begin if required by Code of Federal Regulations, title 45, section 155.310(a)(3)new text end .

deleted text begin (b) The commissioner shall not deny eligibility to an otherwise eligible applicant who has applied for a Social Security number and is awaiting issuance of that Social Security number. deleted text end

deleted text begin (c) Newborns enrolled under section 256L.05, subdivision 3, are exempt from the requirements of this subdivision. deleted text end

deleted text begin (d) Individuals who refuse to provide a Social Security number because of well-established religious objections are exempt from the requirements of this subdivision. The term "well-established religious objections" has the meaning given in Code of Federal Regulations, title 42, section 435.910. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 23.

Minnesota Statutes 2014, section 256L.04, subdivision 2, is amended to read:

Subd. 2.

Third-party liability, paternity, and other medical support.

deleted text begin (a) To be eligible for MinnesotaCare,deleted text end Individuals and families deleted text begin mustdeleted text end new text begin maynew text end cooperate with the state agency to identify potentially liable third-party payers and assist the state in obtaining third-party payments. "Cooperation" includes, but is not limited to, complying with the notice requirements in section 256B.056, subdivision 9, identifying any third party who may be liable for care and services provided under MinnesotaCare to the enrollee, providing relevant information to assist the state in pursuing a potentially liable third party, and completing forms necessary to recover third-party payments.

deleted text begin (b) A parent, guardian, relative caretaker, or child enrolled in the MinnesotaCare program must cooperate with the Department of Human Services and the local agency in establishing the paternity of an enrolled child and in obtaining medical care support and payments for the child and any other person for whom the person can legally assign rights, in accordance with applicable laws and rules governing the medical assistance program. A child shall not be ineligible for or disenrolled from the MinnesotaCare program solely because the child's parent, relative caretaker, or guardian fails to cooperate in establishing paternity or obtaining medical support. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 24.

Minnesota Statutes 2015 Supplement, section 256L.04, subdivision 7b, is amended to read:

Subd. 7b.

Annual income limits adjustment.

The commissioner shall adjust the income limits under this section annually deleted text begin on Januarydeleted text end new text begin each Julynew text end 1 as deleted text begin provideddeleted text end new text begin describednew text end in deleted text begin Code of Federal Regulations, title 26, section 1.36B-1(h)deleted text end new text begin section 256B.056, subdivision 1cnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017. new text end

Sec. 25.

Minnesota Statutes 2015 Supplement, section 256L.05, subdivision 3a, is amended to read:

Subd. 3a.

Redetermination of eligibility.

(a) An enrollee's eligibility must be redetermined on an annual basisnew text begin , in accordance with Code of Federal Regulations, title 42, section 435.916(a)new text end . deleted text begin The period of eligibility is the entire calendar year following the year in which eligibility is redetermined. Beginning in calendar year 2015, eligibility redeterminations shall occur during the open enrollment period for qualified health plans as specified in Code of Federal Regulations, title 45, section 155.410.deleted text end new text begin The 12-month eligibility period begins the month of application. Beginning July 1, 2017, the commissioner shall adjust the eligibility period for enrollees to implement renewals throughout the year according to guidance from the Centers for Medicare and Medicaid Services.new text end

(b) Each new period of eligibility must take into account any changes in circumstances that impact eligibility and premium amount. Coverage begins as provided in section 256L.06.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017. new text end

Sec. 26.

Minnesota Statutes 2015 Supplement, section 256L.06, subdivision 3, is amended to read:

Subd. 3.

Commissioner's duties and payment.

(a) Premiums are dedicated to the commissioner for MinnesotaCare.

(b) The commissioner shall develop and implement procedures to: (1) require enrollees to report changes in income; (2) adjust sliding scale premium payments, based upon both increases and decreases in enrollee income, at the time the change in income is reported; and (3) disenroll enrollees from MinnesotaCare for failure to pay required premiums. Failure to pay includes payment with a dishonored check, a returned automatic bank withdrawal, or a refused credit card or debit card payment. The commissioner may demand a guaranteed form of payment, including a cashier's check or a money order, as the only means to replace a dishonored, returned, or refused payment.

(c) Premiums are calculated on a calendar month basis and may be paid on a monthly, quarterly, or semiannual basis, with the first payment due upon notice from the commissioner of the premium amount required. The commissioner shall inform applicants and enrollees of these premium payment options. Premium payment is required before enrollment is complete and to maintain eligibility in MinnesotaCare. Premium payments received before noon are credited the same day. Premium payments received after noon are credited on the next working day.

(d) Nonpayment of the premium will result in disenrollment from the plan effective for the calendar month following the month for which the premium was due. Persons disenrolled for nonpayment may not reenroll prior to the first day of the month following the payment of an amount equal to two months' premiums.

new text begin (e) The commissioner shall forgive the past-due premium for persons disenrolled under paragraph (d) prior to issuing a premium invoice for the fourth month following disenrollment. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 27.

Minnesota Statutes 2014, section 256L.07, subdivision 1, is amended to read:

Subdivision 1.

General requirements.

Individuals enrolled in MinnesotaCare under section 256L.04, subdivision 1, and individuals enrolled in MinnesotaCare under section 256L.04, subdivision 7, whose income increases above 200 percent of the federal poverty guidelines, are no longer eligible for the program and shall be disenrolled by the commissioner. For persons disenrolled under this subdivision, MinnesotaCare coverage terminates the last day of the calendar month deleted text begin following the monthdeleted text end in which the commissioner deleted text begin determines thatdeleted text end new text begin sends advance notice according to Code of Federal Regulations, title 42, section 431.211, that indicatesnew text end the income of a family or individual exceeds program income limits.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 28.

Minnesota Statutes 2014, section 256L.11, subdivision 7, is amended to read:

Subd. 7.

Critical access dental providers.

Effective for dental services provided to MinnesotaCare enrollees on or after deleted text begin January 1, 2007, through August 31, 2011deleted text end new text begin July 1, 2016new text end , the commissioner shall increase payment rates to dentists and dental clinics deemed by the commissioner to be critical access providers under section 256B.76, subdivision 4, deleted text begin by 50 percent above the payment rate that would otherwise be paid to the provider. Effective for dental services provided on or after September 1, 2011, the commissioner shall increase the payment ratedeleted text end by deleted text begin 30deleted text end new text begin 32.5new text end percent above the payment rate that would otherwise be paid to the providernew text begin , except for a dental clinic or dental group described in section 256B.76, subdivision 4, paragraph (b), in which the commissioner shall increase the payment rate by 30 percent above the payment rate that would otherwise be paid to the providernew text end . The commissioner shall pay the prepaid health plans under contract with the commissioner amounts sufficient to reflect this rate increase. The prepaid health plan must pass this rate increase to providers who have been identified by the commissioner as critical access dental providers under section 256B.76, subdivision 4.

Sec. 29.

Minnesota Statutes 2015 Supplement, section 256L.15, subdivision 1, is amended to read:

Subdivision 1.

Premium determination for MinnesotaCare.

(a) Families with children and individuals shall pay a premium determined according to subdivision 2.

(b) Members of the military and their families who meet the eligibility criteria for MinnesotaCare upon eligibility approval made within 24 months following the end of the member's tour of active duty shall have their premiums paid by the commissioner. The effective date of coverage for an individual or family who meets the criteria of this paragraph shall be the first day of the month following the month in which eligibility is approved. This exemption applies for 12 months.

(c) Beginning July 1, 2009, American Indians enrolled in MinnesotaCare and their families shall have their premiums waived by the commissioner in accordance with section 5006 of the American Recovery and Reinvestment Act of 2009, Public Law 111-5. An individual must deleted text begin documentdeleted text end new text begin indicatenew text end status as an American Indian, as defined under Code of Federal Regulations, title 42, section 447.50, to qualify for the waiver of premiums.new text begin The commissioner shall accept attestation of an individual's status as an American Indian as verification until the United States Department of Health and Human Services approves an electronic data source for this purpose.new text end

(d) For premiums effective August 1, 2015, and after, the commissioner, after consulting with the chairs and ranking minority members of the legislative committees with jurisdiction over human services, shall increase premiums under subdivision 2 for recipients based on June 2015 program enrollment. Premium increases shall be sufficient to increase projected revenue to the fund described in section 16A.724 by at least $27,800,000 for the biennium ending June 30, 2017. The commissioner shall publish the revised premium scale on the Department of Human Services Web site and in the State Register no later than June 15, 2015. The revised premium scale applies to all premiums on or after August 1, 2015, in place of the scale under subdivision 2.

(e) By July 1, 2015, the commissioner shall provide the chairs and ranking minority members of the legislative committees with jurisdiction over human services the revised premium scale effective August 1, 2015, and statutory language to codify the revised premium schedule.

(f) Premium changes authorized under paragraph (d) must only apply to enrollees not otherwise excluded from paying premiums under state or federal law. Premium changes authorized under paragraph (d) must satisfy the requirements for premiums for the Basic Health Program under title 42 of Code of Federal Regulations, section 600.505.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 30.

new text begin DIRECTION TO COMMISSIONER OF HUMAN SERVICES; NOTICE. new text end

new text begin For all individuals that received medical assistance non-long-term care services on or after July 1, 2014, the commissioner of human services must provide notice of the 2016 amendments to Minnesota Statutes, section 256B.15, subdivisions 1a and 2. The notice must be provided within 90 days from the date of enactment. new text end

Sec. 31.

new text begin REPEALER. new text end

new text begin (a) new text end new text begin Minnesota Statutes 2014, section 256B.059, subdivision 1a, new text end new text begin is repealed. new text end

new text begin (b) new text end new text begin Minnesota Statutes 2014, sections 256L.04, subdivisions 2a and 8; 256L.22; 256L.24; 256L.26; and 256L.28, new text end new text begin are repealed. new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective June 1, 2016. Paragraph (b) is effective the day following final enactment. new text end

ARTICLE 20

HEALTH DEPARTMENT

Section 1.

Minnesota Statutes 2014, section 13.3805, is amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Radon testing and mitigation data. new text end

new text begin Data maintained by the Department of Health that identify the address of a radon testing or mitigation site, and the name, address, e-mail address, and telephone number of residents and residential property owners of a radon testing or mitigation site, are private data on individuals or nonpublic data. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 2.

Minnesota Statutes 2014, section 62D.04, subdivision 1, is amended to read:

Subdivision 1.

Application review.

Upon receipt of an application for a certificate of authority, the commissioner of health shall determine whether the applicant for a certificate of authority has:

(a) demonstrated the willingness and potential ability to assure that health care services will be provided in such a manner as to enhance and assure both the availability and accessibility of adequate personnel and facilities;

(b) arrangements for an ongoing evaluation of the quality of health carenew text begin , including a peer review processnew text end ;

(c) a procedure to develop, compile, evaluate, and report statistics relating to the cost of its operations, the pattern of utilization of its services, the quality, availability and accessibility of its services, and such other matters as may be reasonably required by regulation of the commissioner of health;

(d) reasonable provisions for emergency and out of area health care services;

(e) demonstrated that it is financially responsible and may reasonably be expected to meet its obligations to enrollees and prospective enrollees. In making this determination, the commissioner of health shall require the amount of initial net worth required in section 62D.042, compliance with the risk-based capital standards under sections 60A.50 to 60A.592, the deposit required in section 62D.041, and in addition shall consider:

(1) the financial soundness of its arrangements for health care services and the proposed schedule of charges used in connection therewith;

(2) arrangements which will guarantee for a reasonable period of time the continued availability or payment of the cost of health care services in the event of discontinuance of the health maintenance organization; and

(3) agreements with providers for the provision of health care services;

(f) demonstrated that it will assume full financial risk on a prospective basis for the provision of comprehensive health maintenance services, including hospital care; provided, however, that the requirement in this paragraph shall not prohibit the following:

(1) a health maintenance organization from obtaining insurance or making other arrangements (i) for the cost of providing to any enrollee comprehensive health maintenance services, the aggregate value of which exceeds $5,000 in any year, (ii) for the cost of providing comprehensive health care services to its members on a nonelective emergency basis, or while they are outside the area served by the organization, or (iii) for not more than 95 percent of the amount by which the health maintenance organization's costs for any of its fiscal years exceed 105 percent of its income for such fiscal years; and

(2) a health maintenance organization from having a provision in a group health maintenance contract allowing an adjustment of premiums paid based upon the actual health services utilization of the enrollees covered under the contract, except that at no time during the life of the contract shall the contract holder fully self-insure the financial risk of health care services delivered under the contract. Risk sharing arrangements shall be subject to the requirements of sections 62D.01 to 62D.30;

(g) demonstrated that it has made provisions for and adopted a conflict of interest policy applicable to all members of the board of directors and the principal officers of the health maintenance organization. The conflict of interest policy shall include the procedures described in section 317A.255, subdivisions 1 and 2. However, the commissioner is not precluded from finding that a particular transaction is an unreasonable expense as described in section 62D.19 even if the directors follow the required procedures; and

(h) otherwise met the requirements of sections 62D.01 to 62D.30.

Sec. 3.

Minnesota Statutes 2014, section 62D.08, subdivision 3, is amended to read:

Subd. 3.

Report requirements.

Such report shall be on forms prescribed by the commissioner of health, and shall include:

(a) a financial statement of the organization, including its balance sheet and receipts and disbursements for the preceding year certified by an independent certified public accountant, reflecting at least (1) all prepayment and other payments received for health care services rendered, (2) expenditures to all providers, by classes or groups of providers, and insurance companies or nonprofit health service plan corporations engaged to fulfill obligations arising out of the health maintenance contract, (3) expenditures for capital improvements, or additions thereto, including but not limited to construction, renovation or purchase of facilities and capital equipment, and (4) a supplementary statement of assets, liabilities, premium revenue, and expenditures for risk sharing business under section 62D.04, subdivision 1, on forms prescribed by the commissioner;

(b) the number of new enrollees enrolled during the year, the number of group enrollees and the number of individual enrollees as of the end of the year and the number of enrollees terminated during the year;

(c) a summary of information compiled pursuant to section 62D.04, subdivision 1, clause (c), in such form as may be required by the commissioner of health;

(d) a report of the names and addresses of all persons set forth in section 62D.03, subdivision 4, clause (c), who were associated with the health maintenance organization or the major participating entity during the preceding year, and the amount of wages, expense reimbursements, or other payments to such individuals for services to the health maintenance organization or the major participating entity, as those services relate to the health maintenance organization, including a full disclosure of all financial arrangements during the preceding year required to be disclosed pursuant to section 62D.03, subdivision 4, clause (d);

(e) a separate report addressing health maintenance contracts sold to individuals covered by Medicare, title XVIII of the Social Security Act, as amended, including the information required under section 62D.30, subdivision 6; deleted text begin anddeleted text end

new text begin (f) data on the number of complaints received and the category of each complaint as defined by the commissioner. The categories must include access, communication and behavior, health plan administration, facilities and environment, coordination of care, and technical competence and appropriateness. The commissioner, in consultation with interested stakeholders, shall define complaint categories to be used by each health maintenance organization by July 1, 2017, and the categories must be used by each health maintenance organization beginning calendar year 2018; and new text end

deleted text begin (f)deleted text end new text begin (g)new text end such other information relating to the performance of the health maintenance organization as is reasonably necessary to enable the commissioner of health to carry out the duties under sections 62D.01 to 62D.30.

Sec. 4.

new text begin [62D.115] QUALITY OF CARE COMPLAINTS. new text end

new text begin Subdivision 1. new text end

new text begin Quality of care complaint. new text end

new text begin For purposes of this section, "quality of care complaint" means an expressed dissatisfaction regarding health care services resulting in potential or actual harm to an enrollee. Quality of care complaints may include the following, to the extent that they affect the clinical quality of health care services rendered: access; provider and staff competence; clinical appropriateness of care; communications; behavior; facility and environmental considerations; and other factors that could impact the quality of health care services. new text end

new text begin Subd. 2. new text end

new text begin Quality of care complaint investigation. new text end

new text begin (a) Each health maintenance organization shall develop and implement a quality of care complaint investigation process that meets the requirements of this section. The process must include a written policy and procedures for the receipt, investigation, and follow-up of quality of care complaints, that includes the requirements in paragraphs (b) to (h). new text end

new text begin (b) A health maintenance organization's definition for quality of care complaints must include the concerns identified in subdivision 1. new text end

new text begin (c) A health maintenance organization must include a description of each quality of care complaint level of severity, including: new text end

new text begin (1) classification of complaints that warrant peer protection confidentiality as defined by the commissioner in paragraph (h); and new text end

new text begin (2) investigation procedures for each level of severity. new text end

new text begin (d) Any complaint with an allegation regarding quality of care or service must be investigated by the health maintenance organization. Documentation must show that each allegation has been addressed. new text end

new text begin (e) Conclusions of each investigation must be supported with evidence that may include an associated corrective action plan implemented and documented and a formal response from a provider to the health maintenance organization if a formal response was submitted to the health maintenance organization. The record of investigation must include all related documents, correspondence, summaries, discussions, consultation, and conferences held. new text end

new text begin (f) A medical director review shall be conducted as part of the investigation process when there is potential for patient harm. new text end

new text begin (g) Each quality of care complaint received by a health maintenance organization must be tracked and trended for review by the health maintenance organization according to provider type and the following type of quality of care issue: behavior, facility, environmental, or technical competence. new text end

new text begin (h) The commissioner, in consultation with interested stakeholders, shall define complaints that are subject to peer protection confidentiality in accordance with state and federal law by January 1, 2018. new text end

new text begin Subd. 3. new text end

new text begin Complaint reporting. new text end

new text begin Each health maintenance organization shall submit to the commissioner, as part of the company's annual filing, data on the number of complaints and the category as defined by the commissioner as required under section 62D.08, subdivision 3, paragraph (f). new text end

new text begin Subd. 4. new text end

new text begin Records. new text end

new text begin Each health maintenance organization shall maintain records of all quality of care complaints and their resolution and retain those records for five years. Notwithstanding section 145.64, information provided to the commissioner according to this subdivision is classified as confidential data on individuals or protected nonpublic data as defined in section 13.02, subdivision 3 or 13. new text end

new text begin Subd. 5. new text end

new text begin Exception. new text end

new text begin This section does not apply to quality of care complaints received by a health maintenance organization from an enrollee who is covered under a public health care program administered by the commissioner of human services under chapter 256B or 256L. new text end

Sec. 5.

Minnesota Statutes 2014, section 62J.495, subdivision 4, is amended to read:

Subd. 4.

Coordination with national HIT activities.

(a) The commissioner, in consultation with the e-Health Advisory Committee, shall update the statewide implementation plan required under subdivision 2 and released June 2008, to be consistent with the updated Federal HIT Strategic Plan released by the Office of the National Coordinator in accordance with section 3001 of the HITECH Act. The statewide plan shall meet the requirements for a plan required under section 3013 of the HITECH Act.

(b) The commissioner, in consultation with the e-Health Advisory Committee, shall work to ensure coordination between state, regional, and national efforts to support and accelerate efforts to effectively use health information technology to improve the quality and coordination of health care and the continuity of patient care among health care providers, to reduce medical errors, to improve population health, to reduce health disparities, and to reduce chronic disease. The commissioner's coordination efforts shall include but not be limited to:

(1) assisting in the development and support of health information technology regional extension centers established under section 3012(c) of the HITECH Act to provide technical assistance and disseminate best practices; deleted text begin anddeleted text end

(2) providing supplemental information to the best practices gathered by regional centers to ensure that the information is relayed in a meaningful way to the Minnesota health care communitydeleted text begin .deleted text end new text begin ;new text end

new text begin (3) providing financial and technical support to Minnesota health care providers to encourage implementation of admission, discharge and transfer alerts, and care summary document exchange transactions and to evaluate the impact of health information technology on cost and quality of care. Communications about available financial and technical support shall include clear information about the interoperable health record requirements in subdivision 1, including a separate statement in bold-face type clarifying the exceptions to those requirements; new text end

new text begin (4) providing educational resources and technical assistance to health care providers and patients related to state and national privacy, security, and consent laws governing clinical health information, including the requirements in sections 144.291 to 144.298. In carrying out these activities, the commissioner's technical assistance does not constitute legal advice; new text end

new text begin (5) assessing Minnesota's legal, financial, and regulatory framework for health information exchange, including the requirements in sections 144.291 to 144.298, and making recommendations for modifications that would strengthen the ability of Minnesota health care providers to securely exchange data in compliance with patient preferences and in a way that is efficient and financially sustainable; and new text end

new text begin (6) seeking public input on both patient impact and costs associated with requirements related to patient consent for release of health records for the purposes of treatment, payment, and health care operations, as required in section 144.293, subdivision 2. The commissioner shall provide a report to the legislature on the findings of this public input process no later than February 1, 2017. new text end

(c) The commissioner, in consultation with the e-Health Advisory Committee, shall monitor national activity related to health information technology and shall coordinate statewide input on policy development. The commissioner shall coordinate statewide responses to proposed federal health information technology regulations in order to ensure that the needs of the Minnesota health care community are adequately and efficiently addressed in the proposed regulations. The commissioner's responses may include, but are not limited to:

(1) reviewing and evaluating any standard, implementation specification, or certification criteria proposed by the national HIT standards committee;

(2) reviewing and evaluating policy proposed by the national HIT policy committee relating to the implementation of a nationwide health information technology infrastructure;

(3) monitoring and responding to activity related to the development of quality measures and other measures as required by section 4101 of the HITECH Act. Any response related to quality measures shall consider and address the quality efforts required under chapter 62U; and

(4) monitoring and responding to national activity related to privacy, security, and data stewardship of electronic health information and individually identifiable health information.

(d) To the extent that the state is either required or allowed to apply, or designate an entity to apply for or carry out activities and programs under section 3013 of the HITECH Act, the commissioner of health, in consultation with the e-Health Advisory Committee and the commissioner of human services, shall be the lead applicant or sole designating authority. The commissioner shall make such designations consistent with the goals and objectives of sections 62J.495 to 62J.497 and 62J.50 to 62J.61.

(e) The commissioner of human services shall apply for funding necessary to administer the incentive payments to providers authorized under title IV of the American Recovery and Reinvestment Act.

(f) The commissioner shall include in the report to the legislature information on the activities of this subdivision and provide recommendations on any relevant policy changes that should be considered in Minnesota.

Sec. 6.

Minnesota Statutes 2014, section 62J.496, subdivision 1, is amended to read:

Subdivision 1.

Account establishment.

(a) An account is established to:

(1) finance the purchase of certified electronic health records or qualified electronic health records as defined in section 62J.495, subdivision 1a;

(2) enhance the utilization of electronic health record technology, which may include costs associated with upgrading the technology to meet the criteria necessary to be a certified electronic health record or a qualified electronic health record;

(3) train personnel in the use of electronic health record technology; and

(4) improve the secure electronic exchange of health information.

(b) Amounts deposited in the account, including any grant funds obtained through federal or other sources, loan repayments, and interest earned on the amounts shall be used only for awarding loans or loan guarantees, as a source of reserve and security for leveraged loans, new text begin for activities authorized in section 62J.495, subdivision 4, new text end or for the administration of the account.

(c) The commissioner may accept contributions to the account from private sector entities subject to the following provisions:

(1) the contributing entity may not specify the recipient or recipients of any loan issued under this subdivision;

(2) the commissioner shall make public the identity of any private contributor to the loan fund, as well as the amount of the contribution provided;

(3) the commissioner may issue letters of commendation or make other awards that have no financial value to any such entity; and

(4) a contributing entity may not specify that the recipient or recipients of any loan use specific products or services, nor may the contributing entity imply that a contribution is an endorsement of any specific product or service.

(d) The commissioner may use the loan funds to reimburse private sector entities for any contribution made to the loan fund. Reimbursement to private entities may not exceed the principle amount contributed to the loan fund.

(e) The commissioner may use funds deposited in the account to guarantee, or purchase insurance for, a local obligation if the guarantee or purchase would improve credit market access or reduce the interest rate applicable to the obligation involved.

(f) The commissioner may use funds deposited in the account as a source of revenue or security for the payment of principal and interest on revenue or general obligation bonds issued by the state if the proceeds of the sale of the bonds will be deposited into the loan fund.

new text begin (g) The commissioner shall not award new loans or loan guarantees after July 1, 2016. new text end

Sec. 7.

Minnesota Statutes 2014, section 144.05, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Reports on interagency agreements and intra-agency transfers. new text end

new text begin The commissioner of health shall provide quarterly reports to the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services policy and finance on: new text end

new text begin (1) interagency agreements or service-level agreements and any renewals or extensions of existing interagency or service level agreements with a state department under section 15.01, state agency under section 15.012, or the Office of MN.IT Services, with a value of more than $100,000, or related agreements with the same department or agency with a cumulative value of more than $100,000; and new text end

new text begin (2) transfers of appropriations of more than $100,000 between accounts within or between agencies. new text end

new text begin The report must include the statutory citation authorizing the agreement, transfer or dollar amount, purpose, and effective date of the agreement, duration of the agreement, and a copy of the agreement. new text end

Sec. 8.

new text begin [144.1912] GREATER MINNESOTA FAMILY MEDICINE RESIDENCY GRANT PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Commissioner" means the commissioner of health. new text end

new text begin (c) "Eligible family medicine residency program" means a program that meets the following criteria: new text end

new text begin (1) is located in Minnesota outside the seven-county metropolitan area, as defined in section 473.121, subdivision 4; new text end

new text begin (2) is accredited as a family medicine residency program or is a candidate for accreditation; new text end

new text begin (3) is focused on the education and training of family medicine physicians to serve communities outside the metropolitan area; and new text end

new text begin (4) demonstrates that over the most recent three years, at least 25 percent of its graduates practice in Minnesota communities outside the metropolitan area. new text end

new text begin Subd. 2. new text end

new text begin Program administration. new text end

new text begin (a) The commissioner shall award family medicine residency grants to existing, eligible, not-for-profit family medicine residency programs to support current and new residency positions. Funds shall be allocated first to proposed new family medicine residency positions, and remaining funds shall be allocated proportionally based on the number of existing residents in eligible programs. The commissioner may fund a new residency position for up to three years. new text end

new text begin (b) Grant funds awarded may only be spent to cover the costs of: new text end

new text begin (1) establishing, maintaining, or expanding training for family medicine residents; new text end

new text begin (2) recruitment, training, and retention of residents and faculty; new text end

new text begin (3) travel and lodging for residents; and new text end

new text begin (4) faculty, resident, and preceptor salaries. new text end

new text begin (c) Grant funds shall not be used to supplant any other government or private funds available for these purposes. new text end

new text begin Subd. 3. new text end

new text begin Applications. new text end

new text begin Eligible family medicine residency programs seeking a grant must apply to the commissioner. The application must include objectives, a related work plan and budget, a description of the number of new and existing residency positions that will be supported using grant funds, and additional information the commissioner determines to be necessary. The commissioner shall determine whether applications are complete and responsive and may require revisions or additional information before awarding a grant. new text end

new text begin Subd. 4. new text end

new text begin Program oversight. new text end

new text begin The commissioner shall require and collect from family medicine residency programs receiving grants, information necessary to administer and evaluate the program. The evaluation shall include the scope of expansion of new residency positions and information describing specific programs to enhance current residency positions, which may include facility improvements. The commissioner shall continue to collect data on greater Minnesota family medicine residency shortages. new text end

Sec. 9.

Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 3, is amended to read:

Subd. 3.

Rulemaking.

The commissioner of health shall adopt rules deleted text begin fordeleted text end new text begin establishingnew text end licensure new text begin requirements new text end and deleted text begin enforcement of applicable laws and rulesdeleted text end new text begin work standardsnew text end relating to indoor radon in dwellings and other buildings, with the exception of newly constructed Minnesota homes according to section 326B.106, subdivision 6. The commissioner shall coordinate, oversee, and implement all state functions in matters concerning the presence, effects, measurement, and mitigation of risks of radon in dwellings and other buildings.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 10.

Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 4, is amended to read:

Subd. 4.

System tag.

All radon mitigation systems installed in Minnesota on or after deleted text begin October 1, 2017deleted text end new text begin January 1, 2018new text end , must have a radon mitigation system tag provided by the commissioner. A radon mitigation professional must attach the tag to the radon mitigation system in a visible location.

Sec. 11.

Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 5, is amended to read:

Subd. 5.

License required annually.

new text begin Effective January 1, 2018, new text end a license is required annually for every person, firm, or corporation that deleted text begin sells a device ordeleted text end performs a service for compensation to detect the presence of radon in the indoor atmosphere, performs laboratory analysis, or performs a service to mitigate radon in the indoor atmosphere. deleted text begin This section does not apply to retail stores that only sell or distribute radon sampling but are not engaged in the manufacture of radon sampling devices.deleted text end

Sec. 12.

Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 6, is amended to read:

Subd. 6.

Exemptions.

deleted text begin Radon systems installed in newly constructed Minnesota homes according to section 326B.106, subdivision 6, prior to the issuance of a certificate of occupancy are not required to follow the requirements of this section. deleted text end new text begin This section does not apply to: new text end

new text begin (1) employees of a firm or corporation that installs radon control systems in newly constructed Minnesota homes as specified in subdivision 11; new text end

new text begin (2) a person authorized as a building official under Minnesota Rules, part 1300.0070, or that person's designee; or new text end

new text begin (3) any person, firm, corporation, or entity that distributes radon testing devices or information for general educational purposes. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 13.

Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 8, is amended to read:

Subd. 8.

Licensing fees.

(a) All radon license applications submitted to the commissioner of health must be accompanied by the required fees. If the commissioner determines that insufficient fees were paid, the necessary additional fees must be paid before the commissioner approves the application. The commissioner shall charge the following fees for each radon license:

(1) Each measurement professional license, deleted text begin $300deleted text end new text begin $150new text end per year. "Measurement professional" means any person who performs a test to determine the presence and concentration of radon in a building deleted text begin they dodeleted text end new text begin the person doesnew text end not own or leasedeleted text begin ; provides professional or expert advice on radon testing, radon exposure, or health risks related to radon exposure; or makes representations of doing any of these activitiesdeleted text end .

(2) Each mitigation professional license, deleted text begin $500deleted text end new text begin $250new text end per year. "Mitigation professional" means an individual who deleted text begin performsdeleted text end new text begin installs or designs anew text end radon mitigation new text begin system new text end in a building deleted text begin they dodeleted text end new text begin the individual doesnew text end not own or lease; deleted text begin provides professional or expert advice on radon mitigation or radon entry routes;deleted text end or provides on-site supervision of radon mitigation and mitigation techniciansdeleted text begin ; or makes representations of doing any of these activitiesdeleted text end . new text begin "On-site supervision" means a review at the property of mitigation work upon completion of the work and attachment of a system tag. Employees or subcontractors who are supervised by a licensed mitigation professional are not required to be licensed under this clause. new text end This license also permits the licensee to perform the activities of a measurement professional described in clause (1).

(3) Each mitigation company license, deleted text begin $500deleted text end new text begin $100new text end per year. "Mitigation company" means any business or government entity that performs or authorizes employees to perform radon mitigation. This fee is waived if the new text begin mitigation new text end company deleted text begin is a sole proprietorshipdeleted text end new text begin employs only one licensed mitigation professionalnew text end .

(4) Each radon analysis laboratory license, $500 per year. "Radon analysis laboratory" means a business entity or government entity that analyzes passive radon detection devices to determine the presence and concentration of radon in the devices. This fee is waived if the laboratory is a government entity and is only distributing test kits for the general public to use in Minnesota.

(5) Each Minnesota Department of Health radon mitigation system tag, $75 per tag. "Minnesota Department of Health radon mitigation system tag" or "system tag" means a unique identifiable radon system label provided by the commissioner of health.

(b) Fees collected under this section shall be deposited in the state treasury and credited to the state government special revenue fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 14.

Minnesota Statutes 2015 Supplement, section 144.4961, is amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Local inspections or permits. new text end

new text begin This section does not preclude local units of government from requiring additional permits or inspections for radon control systems, and does not supersede any local inspection or permit requirements. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 15.

Minnesota Statutes 2015 Supplement, section 144.4961, is amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Application; newly constructed homes. new text end

new text begin This section does not apply to newly constructed Minnesota homes according to section 326B.106, subdivision 6, prior to the issuance of a certificate of occupancy. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 16.

Minnesota Statutes 2014, section 144A.75, subdivision 5, is amended to read:

Subd. 5.

Hospice provider.

"Hospice provider" means an individual, organization, association, corporation, unit of government, or other entity that is regularly engaged in the delivery, directly or by contractual arrangement, of hospice services for a fee to deleted text begin terminally illdeleted text end hospice patients. A hospice must provide all core services.

Sec. 17.

Minnesota Statutes 2014, section 144A.75, subdivision 6, is amended to read:

Subd. 6.

Hospice patient.

"Hospice patient" means an individual deleted text begin who has been diagnosed as terminally ill, with a probable life expectancy of under one year, asdeleted text end new text begin whose illness has been new text end documented by the individual's attending physician and hospice medical director, who alone or, when unable, through the individual's family has voluntarily consented to and received admission to a hospice providernew text begin , and who:new text end

new text begin (1) has been diagnosed as terminally ill, with a probable life expectancy of under one year; or new text end

new text begin (2) is 21 years of age or younger; has been diagnosed with a chronic, complex, and life-threatening illness contributing to a shortened life expectancy; and is not expected to survive to adulthoodnew text end .

Sec. 18.

Minnesota Statutes 2014, section 144A.75, subdivision 8, is amended to read:

Subd. 8.

Hospice services; hospice care.

"Hospice services" or "hospice care" means palliative and supportive care and other services provided by an interdisciplinary team under the direction of an identifiable hospice administration to terminally ill hospice patients and their families to meet the physical, nutritional, emotional, social, spiritual, and special needs experienced during the final stages of illness, dying, and bereavementnew text begin , or during a chronic, complex, and life-threatening illness contributing to a shortened life expectancy for hospice patients who meet the criteria in subdivision 6, clause (2)new text end . These services are provided through a centrally coordinated program that ensures continuity and consistency of home and inpatient care that is provided directly or through an agreement.

Sec. 19.

Minnesota Statutes 2015 Supplement, section 144A.75, subdivision 13, is amended to read:

Subd. 13.

Residential hospice facility.

(a) "Residential hospice facility" means a facility that resembles a single-family home new text begin modified to address life safety, accessibility, and care needs, new text end located in a residential area that directly provides 24-hour residential and support services in a home-like setting for hospice patients as an integral part of the continuum of home care provided by a hospice and that houses:

(1) no more than eight hospice patients; or

(2) at least nine and no more than 12 hospice patients with the approval of the local governing authority, notwithstanding section 462.357, subdivision 8.

(b) Residential hospice facility also means a facility that directly provides 24-hour residential and support services for hospice patients and that:

(1) houses no more than 21 hospice patients;

(2) meets hospice certification regulations adopted pursuant to title XVIII of the federal Social Security Act, United States Code, title 42, section 1395, et seq.; and

(3) is located on St. Anthony Avenue in St. Paul, Minnesota, and was licensed as a 40-bed non-Medicare certified nursing home as of January 1, 2015.

Sec. 20.

Minnesota Statutes 2014, section 144A.75, is amended by adding a subdivision to read:

new text begin Subd. 13a. new text end

new text begin Respite care. new text end

new text begin "Respite care" means short-term care in an inpatient facility, such as a residential hospice facility, when necessary to relieve the hospice patient's family or other persons caring for the patient. Respite care may be provided on an occasional basis. new text end

Sec. 21.

new text begin [145.908] GRANT PROGRAM; SCREENING AND TREATMENT FOR PRE- AND POSTPARTUM MOOD AND ANXIETY DISORDERS. new text end

new text begin Subdivision 1. new text end

new text begin Grant program established. new text end

new text begin Within the limits of federal funds available specifically for this purpose, the commissioner of health shall establish a grant program to provide culturally competent programs to screen and treat pregnant women and women who have given birth in the preceding 12 months for pre- and postpartum mood and anxiety disorders. Organizations may use grant funds to establish new screening or treatment programs, or expand or maintain existing screening or treatment programs. In establishing the grant program, the commissioner shall prioritize expanding or enhancing screening for pre- and postpartum mood and anxiety disorders in primary care settings. The commissioner shall determine the types of organizations eligible for grants. new text end

new text begin Subd. 2. new text end

new text begin Allowable uses of funds. new text end

new text begin Grant funds awarded by the commissioner under this section: new text end

new text begin (1) must be used to provide health care providers with appropriate training and relevant resources on screening, treatment, follow-up support, and links to community-based resources for pre- and postpartum mood and anxiety disorders; and new text end

new text begin (2) may be used to: new text end

new text begin (i) enable health care providers to provide or receive psychiatric consultations to treat eligible women for pre- and postpartum mood and anxiety disorders; new text end

new text begin (ii) conduct a public awareness campaign; new text end

new text begin (iii) fund start-up costs for telephone lines, Web sites, and other resources to collect and disseminate information about screening and treatment for pre- and postpartum mood and anxiety disorders; or new text end

new text begin (iv) establish connections between community-based resources. new text end

new text begin Subd. 3. new text end

new text begin Federal funds. new text end

new text begin The commissioner shall apply for any available grant funds from the federal Department of Health and Human Services for this program. new text end

Sec. 22.

Minnesota Statutes 2014, section 149A.50, subdivision 2, is amended to read:

Subd. 2.

Requirements for funeral establishment.

A funeral establishment licensed under this section must:

(1) deleted text begin contain adeleted text end new text begin comply withnew text end preparation and embalming room new text begin requirements new text end as described in section 149A.92;

(2) contain office space for making arrangements; and

(3) comply with applicable local and state building codes, zoning laws, and ordinances.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 23.

Minnesota Statutes 2015 Supplement, section 149A.92, subdivision 1, is amended to read:

Subdivision 1.

Establishment update.

deleted text begin (a) Notwithstanding subdivision 11, a funeral establishment with other establishment locations that uses one preparation and embalming room for all establishment locations has until July 1, 2017, to bring the other establishment locations that are not used for preparation or embalming into compliance with this section so long as the preparation and embalming room that is used complies with the minimum standards in this section. deleted text end

deleted text begin (b) At the time that ownership of a funeral establishment changes, the physical location of the establishment changes, or the building housing the funeral establishment or business space of the establishment is remodeled the existing preparation and embalming room must be brought into compliance with the minimum standards in this section and in accordance with subdivision 11. deleted text end

new text begin (a) Any room used by a funeral establishment for preparation and embalming must comply with the minimum standards of this section. A funeral establishment where no preparation and embalming is performed, but which conducts viewings, visitations, and services, or which holds human remains while awaiting final disposition, need not comply with the minimum standards of this section. new text end

new text begin (b) Each funeral establishment must have a preparation and embalming room that complies with the minimum standards of this section, except that a funeral establishment that operates branch locations need only have one compliant preparation and embalming room for all locations. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 24.

Minnesota Statutes 2014, section 327.14, subdivision 8, is amended to read:

Subd. 8.

Recreational camping area.

"Recreational camping area" means any area, whether privately or publicly owned, used on a daily, nightly, weekly, or longer basis for the accommodation of five or more tents or recreational camping vehicles free of charge or for compensation. "Recreational camping area" excludes:

(1) children's camps;

(2) industrial camps;

(3) migrant labor camps, as defined in Minnesota Statutes and state commissioner of health rules;

(4) United States Forest Service camps;

(5) state forest service camps;

(6) state wildlife management areas or state-owned public access areas which are restricted in use to picnicking and boat landing; deleted text begin anddeleted text end

(7) temporary holding areas for self-contained recreational camping vehicles created by and adjacent to motor sports facilities, if the chief law enforcement officer of an affected jurisdiction determines that it is in the interest of public safety to provide a temporary holding areanew text begin ; andnew text end

new text begin (8) a privately owned area used for camping no more than once a year and for no longer than seven consecutive days by members of a private club where the members pay annual dues to belong to the clubnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 25.

Laws 2015, chapter 71, article 8, section 24, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective July 1, 2015, except subdivisions 4 and 5, which are effective deleted text begin October 1, 2017deleted text end new text begin July 1, 2016new text end .

Sec. 26.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2014, section 149A.92, subdivision 11, new text end new text begin is repealed the day following final enactment. new text end

ARTICLE 21

HEALTH-RELATED OCCUPATIONAL LICENSING

GENETIC COUNSELORS

Section 1.

new text begin [147F.01] DEFINITIONS. new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin For purposes of this chapter, the terms defined in this section have the meanings given them. new text end

new text begin Subd. 2. new text end

new text begin ABGC. new text end

new text begin "ABGC" means the American Board of Genetic Counseling, a national agency for certification and recertification of genetic counselors, or its successor organization or equivalent. new text end

new text begin Subd. 3. new text end

new text begin ABMG. new text end

new text begin "ABMG" means the American Board of Medical Genetics, a national agency for certification and recertification of genetic counselors, medical geneticists, and Ph.D. geneticists, or its successor organization. new text end

new text begin Subd. 4. new text end

new text begin ACGC. new text end

new text begin "ACGC" means the Accreditation Council for Genetic Counseling, a specialized program accreditation board for educational training programs granting master's degrees or higher in genetic counseling, or its successor organization. new text end

new text begin Subd. 5. new text end

new text begin Board. new text end

new text begin "Board" means the Board of Medical Practice. new text end

new text begin Subd. 6. new text end

new text begin Eligible status. new text end

new text begin "Eligible status" means an applicant who has met the requirements and received approval from the ABGC to sit for the certification examination. new text end

new text begin Subd. 7. new text end

new text begin Genetic counseling. new text end

new text begin "Genetic counseling" means the provision of services described in section 147F.03 to help clients and their families understand the medical, psychological, and familial implications of genetic contributions to a disease or medical condition. new text end

new text begin Subd. 8. new text end

new text begin Genetic counselor. new text end

new text begin "Genetic counselor" means an individual licensed under this chapter to engage in the practice of genetic counseling. new text end

new text begin Subd. 9. new text end

new text begin Licensed physician. new text end

new text begin "Licensed physician" means an individual who is licensed to practice medicine under chapter 147. new text end

new text begin Subd. 10. new text end

new text begin NSGC. new text end

new text begin "NSGC" means the National Society of Genetic Counselors, a professional membership association for genetic counselors that approves continuing education programs. new text end

new text begin Subd. 11. new text end

new text begin Qualified supervisor. new text end

new text begin "Qualified supervisor" means any person who is licensed under this chapter as a genetic counselor or a physician licensed under chapter 147 to practice medicine in Minnesota. new text end

new text begin Subd. 12. new text end

new text begin Supervisee. new text end

new text begin "Supervisee" means a genetic counselor with a provisional license. new text end

new text begin Subd. 13. new text end

new text begin Supervision. new text end

new text begin "Supervision" means an assessment of the work of the supervisee, including regular meetings and file review, by a qualified supervisor according to the supervision contract. Supervision does not require the qualified supervisor to be present while the supervisee provides services. new text end

Sec. 2.

new text begin [147F.03] SCOPE OF PRACTICE. new text end

new text begin The practice of genetic counseling by a licensed genetic counselor includes the following services: new text end

new text begin (1) obtaining and interpreting individual and family medical and developmental histories; new text end

new text begin (2) determining the mode of inheritance and the risk of transmitting genetic conditions and birth defects; new text end

new text begin (3) discussing the inheritance, features, natural history, means of diagnosis, and management of conditions with clients; new text end

new text begin (4) identifying, coordinating, ordering, and explaining the clinical implications of genetic laboratory tests and other laboratory studies; new text end

new text begin (5) assessing psychosocial factors, including social, educational, and cultural issues; new text end

new text begin (6) providing client-centered counseling and anticipatory guidance to the client or family based on their responses to the condition, risk of occurrence, or risk of recurrence; new text end

new text begin (7) facilitating informed decision-making about testing and management; new text end

new text begin (8) identifying and using community resources that provide medical, educational, financial, and psychosocial support and advocacy; and new text end

new text begin (9) providing accurate written medical, genetic, and counseling information for families and health care professionals. new text end

Sec. 3.

new text begin [147F.05] UNLICENSED PRACTICE PROHIBITED; PROTECTED TITLES AND RESTRICTIONS ON USE. new text end

new text begin Subdivision 1. new text end

new text begin Protected titles. new text end

new text begin No individual may use the title "genetic counselor," "licensed genetic counselor," "gene counselor," "genetic consultant,""genetic assistant," "genetic associate," or any words, letters, abbreviations, or insignia indicating or implying that the individual is eligible for licensure by the state as a genetic counselor unless the individual has been licensed as a genetic counselor according to this chapter. new text end

new text begin Subd. 2. new text end

new text begin Unlicensed practice prohibited. new text end

new text begin Effective January 1, 2018, no individual may practice genetic counseling unless the individual is licensed as a genetic counselor under this chapter except as otherwise provided under this chapter. new text end

new text begin Subd. 3. new text end

new text begin Other practitioners. new text end

new text begin (a) Nothing in this chapter shall be construed to prohibit or restrict the practice of any profession or occupation licensed or registered by the state by an individual duly licensed or registered to practice the profession or occupation or to perform any act that falls within the scope of practice of the profession or occupation. new text end

new text begin (b) Nothing in this chapter shall be construed to require a license under this chapter for: new text end

new text begin (1) an individual employed as a genetic counselor by the federal government or a federal agency if the individual is providing services under the direction and control of the employer; new text end

new text begin (2) a student or intern, having graduated within the past six months, or currently enrolled in an ACGC-accredited genetic counseling educational program providing genetic counseling services that are an integral part of the student's or intern's course of study, are performed under the direct supervision of a licensed genetic counselor or physician who is on duty in the assigned patient care area, and the student is identified by the title "genetic counseling intern"; new text end

new text begin (3) a visiting ABGC- or ABMG-certified genetic counselor working as a consultant in this state who permanently resides outside of the state, or the occasional use of services from organizations from outside of the state that employ ABGC- or ABMG-certified genetic counselors. This is limited to practicing for 30 days total within one calendar year. Certified genetic counselors from outside of the state working as a consultant in this state must be licensed in their state of residence if that credential is available; or new text end

new text begin (4) an individual who is licensed to practice medicine under chapter 147. new text end

new text begin Subd. 4. new text end

new text begin Sanctions. new text end

new text begin An individual who violates this section is guilty of a misdemeanor and shall be subject to sanctions or actions according to section 214.11. new text end

Sec. 4.

new text begin [147F.07] LICENSURE REQUIREMENTS. new text end

new text begin Subdivision 1. new text end

new text begin General requirements for licensure. new text end

new text begin To be eligible for licensure, an applicant, with the exception of those seeking licensure by reciprocity under subdivision 2, must submit to the board: new text end

new text begin (1) a completed application on forms provided by the board along with all fees required under section 147F.17. The applicant must include: new text end

new text begin (i) the applicant's name, Social Security number, home address and telephone number, and business address and telephone number if currently employed; new text end

new text begin (ii) the name and location of the genetic counseling or medical program the applicant completed; new text end

new text begin (iii) a list of degrees received from other educational institutions; new text end

new text begin (iv) a description of the applicant's professional training; new text end

new text begin (v) a list of registrations, certifications, and licenses held in other jurisdictions; new text end

new text begin (vi) a description of any other jurisdiction's refusal to credential the applicant; new text end

new text begin (vii) a description of all professional disciplinary actions initiated against the applicant in any jurisdiction; and new text end

new text begin (viii) any history of drug or alcohol abuse, and any misdemeanor, gross misdemeanor, or felony conviction; new text end

new text begin (2) evidence of graduation from an education program accredited by the ACGC or its predecessor or successor organization; new text end

new text begin (3) a verified copy of a valid and current certification issued by the ABGC or ABMG as a certified genetic counselor, or by the ABMG as a certified medical geneticist; new text end

new text begin (4) additional information as requested by the board, including any additional information necessary to ensure that the applicant is able to practice with reasonable skill and safety to the public; new text end

new text begin (5) a signed statement verifying that the information in the application is true and correct to the best of the applicant's knowledge and belief; and new text end

new text begin (6) a signed waiver authorizing the board to obtain access to the applicant's records in this or any other state in which the applicant completed an educational program or engaged in the practice of genetic counseling. new text end

new text begin Subd. 2. new text end

new text begin Licensure by reciprocity. new text end

new text begin To be eligible for licensure by reciprocity, the applicant must hold a current genetic counselor or medical geneticist registration or license in another state, the District of Columbia, or a territory of the United States, whose standards for registration or licensure are at least equivalent to those of Minnesota, and must: new text end

new text begin (1) submit the application materials and fees as required by subdivision 1, clauses (1), (2), and (4) to (6); new text end

new text begin (2) provide a verified copy from the appropriate government body of a current registration or license for the practice of genetic counseling in another jurisdiction that has initial registration or licensing requirements equivalent to or higher than the requirements in subdivision 1; and new text end

new text begin (3) provide letters of verification from the appropriate government body in each jurisdiction in which the applicant holds a registration or license. Each letter must state the applicant's name, date of birth, registration or license number, date of issuance, a statement regarding disciplinary actions, if any, taken against the applicant, and the terms under which the registration or license was issued. new text end

new text begin Subd. 3. new text end

new text begin Licensure by equivalency. new text end

new text begin (a) The board may grant a license to an individual who does not meet the certification requirements in subdivision 1 but who has been employed as a genetic counselor for a minimum of ten years and provides the following documentation to the board: new text end

new text begin (1) proof of a master's or higher degree in genetics or related field of study from an accredited educational institution; new text end

new text begin (2) proof that the individual has never failed the ABGC or ABMG certification examination; new text end

new text begin (3) three letters of recommendation, with at least one from an individual eligible for licensure under this chapter, and at least one from an individual certified as a genetic counselor by the ABGC or ABMG or an individual certified as a medical geneticist by the ABMG. An individual who submits a letter of recommendation must have worked with the applicant in an employment setting during the past ten years and must attest to the applicant's competency; and new text end

new text begin (4) documentation of the completion of 100 hours of NSGC-approved continuing education credits within the past five years. new text end

new text begin (b) This subdivision expires January 1, 2018. new text end

new text begin Subd. 4. new text end

new text begin License expiration. new text end

new text begin A genetic counselor license shall be valid for one year from the date of issuance. new text end

new text begin Subd. 5. new text end

new text begin License renewal. new text end

new text begin To be eligible for license renewal, a licensed genetic counselor must submit to the board: new text end

new text begin (1) a renewal application on a form provided by the board; new text end

new text begin (2) the renewal fee required under section 147F.17; new text end

new text begin (3) evidence of compliance with the continuing education requirements in section 147F.11; and new text end

new text begin (4) any additional information requested by the board. new text end

Sec. 5.

new text begin [147F.09] BOARD ACTION ON APPLICATIONS FOR LICENSURE. new text end

new text begin (a) The board shall act on each application for licensure according to paragraphs (b) to (d). new text end

new text begin (b) The board shall determine if the applicant meets the requirements for licensure under section 147F.07. The board may investigate information provided by an applicant to determine whether the information is accurate and complete. new text end

new text begin (c) The board shall notify each applicant in writing of action taken on the application, the grounds for denying licensure if a license is denied, and the applicant's right to review the board's decision under paragraph (d). new text end

new text begin (d) Applicants denied licensure may make a written request to the board, within 30 days of the board's notice, to appear before the advisory council and for the advisory council to review the board's decision to deny the applicant's license. After reviewing the denial, the advisory council shall make a recommendation to the board as to whether the denial shall be affirmed. Each applicant is allowed only one request for review per licensure period. new text end

Sec. 6.

new text begin [147F.11] CONTINUING EDUCATION REQUIREMENTS. new text end

new text begin (a) A licensed genetic counselor must complete a minimum of 25 hours of NSGC- or ABMG-approved continuing education units every two years. If a licensee's renewal term is prorated to be more or less than one year, the required number of continuing education units is prorated proportionately. new text end

new text begin (b) The board may grant a variance to the continuing education requirements specified in this section if a licensee demonstrates to the satisfaction of the board that the licensee is unable to complete the required number of educational units during the renewal term. The board may allow the licensee to complete the required number of continuing education units within a time frame specified by the board. In no case shall the board allow the licensee to complete less than the required number of continuing education units. new text end

Sec. 7.

new text begin [147F.13] DISCIPLINE; REPORTING. new text end

new text begin For purposes of this chapter, licensed genetic counselors and applicants are subject to sections 147.091 to 147.162. new text end

Sec. 8.

new text begin [147F.15] LICENSED GENETIC COUNSELOR ADVISORY COUNCIL. new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin The board shall appoint a five-member Licensed Genetic Counselor Advisory Council. One member must be a licensed physician with experience in genetics, three members must be licensed genetic counselors, and one member must be a public member. new text end

new text begin Subd. 2. new text end

new text begin Organization. new text end

new text begin The advisory council shall be organized and administered as provided in section 15.059. new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The advisory council shall: new text end

new text begin (1) advise the board regarding standards for licensed genetic counselors; new text end

new text begin (2) provide for distribution of information regarding licensed genetic counselor practice standards; new text end

new text begin (3) advise the board on enforcement of this chapter; new text end

new text begin (4) review applications and recommend granting or denying licensure or license renewal; new text end

new text begin (5) advise the board on issues related to receiving and investigating complaints, conducting hearings, and imposing disciplinary action in relation to complaints against licensed genetic counselors; and new text end

new text begin (6) perform other duties authorized for advisory councils under chapter 214, as directed by the board. new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin Notwithstanding section 15.059, the advisory council does not expire. new text end

Sec. 9.

new text begin [147F.17] FEES. new text end

new text begin Subdivision 1. new text end

new text begin Fees. new text end

new text begin Fees are as follows: new text end

new text begin (1) license application fee, $200; new text end

new text begin (2) initial licensure and annual renewal, $150; and new text end

new text begin (3) late fee, $75. new text end

new text begin Subd. 2. new text end

new text begin Proration of fees. new text end

new text begin The board may prorate the initial license fee. All licensees are required to pay the full fee upon license renewal. new text end

new text begin Subd. 3. new text end

new text begin Penalty for late renewals. new text end

new text begin An application for registration renewal submitted after the deadline must be accompanied by a late fee in addition to the required fees. new text end

new text begin Subd. 4. new text end

new text begin Nonrefundable fees. new text end

new text begin All fees are nonrefundable. new text end

new text begin Subd. 5. new text end

new text begin Deposit. new text end

new text begin Fees collected by the board under this section shall be deposited in the state government special revenue fund. new text end

ORTHOTICS, PEDORTHICS, AND PROSTHETICS

Sec. 10.

new text begin [153B.10] SHORT TITLE. new text end

new text begin Chapter 153B may be cited as the "Minnesota Orthotist, Prosthetist, and Pedorthist Practice Act." new text end

Sec. 11.

new text begin [153B.15] DEFINITIONS. new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin For purposes of this chapter, the following words have the meanings given. new text end

new text begin Subd. 2. new text end

new text begin Advisory council. new text end

new text begin "Advisory council" means the Orthotics, Prosthetics, and Pedorthics Advisory Council established under section 153B.25. new text end

new text begin Subd. 3. new text end

new text begin Board. new text end

new text begin "Board" means the Board of Podiatric Medicine. new text end

new text begin Subd. 4. new text end

new text begin Custom-fabricated device. new text end

new text begin "Custom-fabricated device" means an orthosis, prosthesis, or pedorthic device for use by a patient that is fabricated to comprehensive measurements or a mold or patient model in accordance with a prescription and which requires on-site or in-person clinical and technical judgment in its design, fabrication, and fitting. new text end

new text begin Subd. 5. new text end

new text begin Licensed orthotic-prosthetic assistant. new text end

new text begin "Licensed orthotic-prosthetic assistant" or "assistant" means a person, licensed by the board, who is educated and trained to participate in comprehensive orthotic and prosthetic care while under the supervision of a licensed orthotist or licensed prosthetist. Assistants may perform orthotic and prosthetic procedures and related tasks in the management of patient care. The assistant may fabricate, repair, and maintain orthoses and prostheses. The use of the title "orthotic-prosthetic assistant" or representations to the public is limited to a person who is licensed under this chapter as an orthotic-prosthetic assistant. new text end

new text begin Subd. 6. new text end

new text begin Licensed orthotic fitter. new text end

new text begin "Licensed orthotic fitter" or "fitter" means a person licensed by the board who is educated and trained in providing certain orthoses, and is trained to conduct patient assessments, formulate treatment plans, implement treatment plans, perform follow-up, and practice management pursuant to a prescription. An orthotic fitter must be competent to fit certain custom-fitted, prefabricated, and off-the-shelf orthoses as follows: new text end

new text begin (1) cervical orthoses, except those used to treat an unstable cervical condition; new text end

new text begin (2) prefabricated orthoses for the upper and lower extremities, except those used in: new text end

new text begin (i) the initial or acute treatment of long bone fractures and dislocations; new text end

new text begin (ii) therapeutic shoes and inserts needed as a result of diabetes; and new text end

new text begin (iii) functional electrical stimulation orthoses; new text end

new text begin (3) prefabricated spinal orthoses, except those used in the treatment of scoliosis or unstable spinal conditions, including halo cervical orthoses; and new text end

new text begin (4) trusses. new text end

new text begin The use of the title "orthotic fitter" or representations to the public is limited to a person who is licensed under this chapter as an orthotic fitter. new text end

new text begin Subd. 7. new text end

new text begin Licensed orthotist. new text end

new text begin "Licensed orthotist" means a person licensed by the board who is educated and trained to practice orthotics, which includes managing comprehensive orthotic patient care pursuant to a prescription. The use of the title "orthotist" or representations to the public is limited to a person who is licensed under this chapter as an orthotist. new text end

new text begin Subd. 8. new text end

new text begin Licensed pedorthist. new text end

new text begin "Licensed pedorthist" means a person licensed by the board who is educated and trained to manage comprehensive pedorthic patient care and who performs patient assessments, formulates and implements treatment plans, and performs follow-up and practice management pursuant to a prescription. A pedorthist may fit, fabricate, adjust, or modify devices within the scope of the pedorthist's education and training. Use of the title "pedorthist" or representations to the public is limited to a person who is licensed under this chapter as a pedorthist. new text end

new text begin Subd. 9. new text end

new text begin Licensed prosthetist. new text end

new text begin "Licensed prosthetist" means a person licensed by the board who is educated and trained to manage comprehensive prosthetic patient care, and who performs patient assessments, formulates and implements treatment plans, and performs follow-up and practice management pursuant to a prescription. Use of the title "prosthetist" or representations to the public is limited to a person who is licensed under this chapter as a prosthetist. new text end

new text begin Subd. 10. new text end

new text begin Licensed prosthetist orthotist. new text end

new text begin "Licensed prosthetist orthotist" means a person licensed by the board who is educated and trained to manage comprehensive prosthetic and orthotic patient care, and who performs patient assessments, formulates and implements treatment plans, and performs follow-up and practice management pursuant to a prescription. Use of the title "prosthetist orthotist" or representations to the public is limited to a person who is licensed under this chapter as a prosthetist orthotist. new text end

new text begin Subd. 11. new text end

new text begin NCOPE. new text end

new text begin "NCOPE" means National Commission on Orthotic and Prosthetic Education, an accreditation program that ensures educational institutions and residency programs meet the minimum standards of quality to prepare individuals to enter the orthotic, prosthetic, and pedorthic professions. new text end

new text begin Subd. 12. new text end

new text begin Orthosis. new text end

new text begin "Orthosis" means an external device that is custom-fabricated or custom-fitted to a specific patient based on the patient's unique physical condition and is applied to a part of the body to help correct a deformity, provide support and protection, restrict motion, improve function, or relieve symptoms of a disease, syndrome, injury, or postoperative condition. new text end

new text begin Subd. 13. new text end

new text begin Orthotics. new text end

new text begin "Orthotics" means the science and practice of evaluating, measuring, designing, fabricating, assembling, fitting, adjusting, or servicing an orthosis pursuant to a prescription. The practice of orthotics includes providing the initial training necessary for fitting an orthotic device for the support, correction, or alleviation of neuromuscular or musculoskeletal dysfunction, disease, injury, or deformity. new text end

new text begin Subd. 14. new text end

new text begin Over-the-counter. new text end

new text begin "Over-the-counter" means a prefabricated, mass-produced item that is prepackaged, requires no professional advice or judgment in size selection or use, and is currently available at retail stores without a prescription. Over-the-counter items are not regulated by this chapter. new text end

new text begin Subd. 15. new text end

new text begin Off-the-shelf. new text end

new text begin "Off-the-shelf" means a prefabricated device sized or modified for the patient's use pursuant to a prescription and that requires changes to be made by a qualified practitioner to achieve an individual fit, such as requiring the item to be trimmed, bent, or molded with or without heat, or requiring any other alterations beyond self adjustment. new text end

new text begin Subd. 16. new text end

new text begin Pedorthic device. new text end

new text begin "Pedorthic device" means below-the-ankle partial foot prostheses for transmetatarsal and more distal amputations, foot orthoses, and subtalar-control foot orthoses to control the range of motion of the subtalar joint. A prescription is required for any pedorthic device, modification, or prefabricated below-the-knee orthosis addressing a medical condition that originates at the ankle or below. Pedorthic devices do not include nontherapeutic inlays or footwear regardless of method of manufacture; unmodified, nontherapeutic over-the-counter shoes; or prefabricated foot care products. new text end

new text begin Subd. 17. new text end

new text begin Pedorthics. new text end

new text begin "Pedorthics" means the science and practice of evaluating, measuring, designing, fabricating, assembling, fitting, adjusting, or servicing a pedorthic device pursuant to a prescription for the correction or alleviation of neuromuscular or musculoskeletal dysfunction, disease, injury, or deformity. The practice of pedorthics includes providing patient care and services pursuant to a prescription to prevent or ameliorate painful or disabling conditions of the foot and ankle. new text end

new text begin Subd. 18. new text end

new text begin Prescription. new text end

new text begin "Prescription" means an order deemed medically necessary by a physician, podiatric physician, osteopathic physician, or a licensed health care provider who has authority in this state to prescribe orthotic and prosthetic devices, supplies, and services. new text end

new text begin Subd. 19. new text end

new text begin Prosthesis. new text end

new text begin "Prosthesis" means a custom-designed, fabricated, fitted, or modified device to treat partial or total limb loss for purposes of restoring physiological function or cosmesis. Prosthesis does not include artificial eyes, ears, fingers, or toes; dental appliances; external breast prosthesis; or cosmetic devices that do not have a significant impact on the musculoskeletal functions of the body. new text end

new text begin Subd. 20. new text end

new text begin Prosthetics. new text end

new text begin "Prosthetics" means the science and practice of evaluating, measuring, designing, fabricating, assembling, fitting, adjusting, or servicing a prosthesis pursuant to a prescription. It includes providing the initial training necessary to fit a prosthesis in order to replace external parts of a human body lost due to amputation, congenital deformities, or absence. new text end

new text begin Subd. 21. new text end

new text begin Resident. new text end

new text begin "Resident" means a person who has completed a NCOPE-approved education program in orthotics or prosthetics and is receiving clinical training in a residency accredited by NCOPE. new text end

new text begin Subd. 22. new text end

new text begin Residency. new text end

new text begin "Residency" means a minimum of an NCOPE-approved program to acquire practical clinical training in orthotics and prosthetics in a patient care setting. new text end

new text begin Subd. 23. new text end

new text begin Supervisor. new text end

new text begin "Supervisor" means the licensed orthotist, prosthetist, or pedorthist who oversees and is responsible for the delivery of appropriate, effective, ethical, and safe orthotic, prosthetic, or pedorthic patient care. new text end

Sec. 12.

new text begin [153B.20] EXCEPTIONS. new text end

new text begin Nothing in this chapter shall prohibit: new text end

new text begin (1) a physician, osteopathic physician, or podiatric physician licensed by the state of Minnesota from providing services within the physician's scope of practice; new text end

new text begin (2) a health care professional licensed by the state of Minnesota, including, but not limited to, chiropractors, physical therapists, and occupational therapy practitioners from providing services within the professional's scope of practice, or an individual working under the supervision of a licensed physician or podiatric physician; new text end

new text begin (3) the practice of orthotics, prosthetics, or pedorthics by a person who is employed by the federal government or any bureau, division, or agency of the federal government while in the discharge of the employee's official duties; new text end

new text begin (4) the practice of orthotics, prosthetics, or pedorthics by: new text end

new text begin (i) a student enrolled in an accredited or approved orthotics, prosthetics, or pedorthics education program who is performing activities required by the program; new text end

new text begin (ii) a resident enrolled in an NCOPE-accredited residency program; or new text end

new text begin (iii) a person working in a qualified, supervised work experience or internship who is obtaining the clinical experience necessary for licensure under this chapter; or new text end

new text begin (5) an orthotist, prosthetist, prosthetist orthotist, pedorthist, assistant, or fitter who is licensed in another state or territory of the United States or in another country that has equivalent licensure requirements as approved by the board from providing services within the professional's scope of practice subject to this chapter, if the individual is qualified and has applied for licensure under this chapter. The individual shall be allowed to practice for no longer than six months following the filing of the application for licensure, unless the individual withdraws the application for licensure or the board denies the license. new text end

Sec. 13.

new text begin [153B.25] ORTHOTICS, PROSTHETICS, AND PEDORTHICS ADVISORY COUNCIL. new text end

new text begin Subdivision 1. new text end

new text begin Creation; membership. new text end

new text begin (a) There is established an Orthotics, Prosthetics, and Pedorthics Advisory Council that shall consist of seven voting members appointed by the board. Five members shall be licensed and practicing orthotists, prosthetists, or pedorthists. Each profession shall be represented on the advisory council. One member shall be a Minnesota-licensed doctor of podiatric medicine who is also a member of the Board of Podiatric Medicine, and one member shall be a public member. new text end

new text begin (b) The council shall be organized and administered under section 15.059. new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin The advisory council shall: new text end

new text begin (1) advise the board on enforcement of the provisions contained in this chapter; new text end

new text begin (2) review reports of investigations or complaints relating to individuals and make recommendations to the board as to whether a license should be denied or disciplinary action taken against an individual; new text end

new text begin (3) advise the board regarding standards for licensure of professionals under this chapter; and new text end

new text begin (4) perform other duties authorized for advisory councils by chapter 214, as directed by the board. new text end

new text begin Subd. 3. new text end

new text begin Chair. new text end

new text begin The council must elect a chair from among its members. new text end

new text begin Subd. 4. new text end

new text begin Administrative provisions. new text end

new text begin The Board of Podiatric Medicine must provide meeting space and administrative services for the council. new text end

Sec. 14.

new text begin [153B.30] LICENSURE. new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin An application for a license shall be submitted to the board in the format required by the board and shall be accompanied by the required fee, which is nonrefundable. new text end

new text begin Subd. 2. new text end

new text begin Qualifications. new text end

new text begin (a) To be eligible for licensure as an orthotist, prosthetist, or prosthetist orthotist, an applicant shall meet orthotist, prosthetist, or prosthetist orthotist certification requirements of either the American Board for Certification in Orthotics, Prosthetics, and Pedorthics or the Board of Certification/Accreditation requirements in effect at the time of the individual's application for licensure and be in good standing with the certifying board. new text end

new text begin (b) To be eligible for licensure as a pedorthist, an applicant shall meet the pedorthist certification requirements of either the American Board for Certification in Orthotics, Prosthetics, and Pedorthics or the Board of Certification/Accreditation that are in effect at the time of the individual's application for licensure and be in good standing with the certifying board. new text end

new text begin (c) To be eligible for licensure as an orthotic or prosthetic assistant, an applicant shall meet the orthotic or prosthetic assistant certification requirements of the American Board for Certification in Orthotics, Prosthetics, and Pedorthics that are in effect at the time of the individual's application for licensure and be in good standing with the certifying board. new text end

new text begin (d) To be eligible for licensure as an orthotic fitter, an applicant shall meet the orthotic fitter certification requirements of either the American Board for Certification in Orthotics, Prosthetics, and Pedorthics or the Board of Certification/Accreditation that are in effect at the time of the individual's application for licensure and be in good standing with the certifying board. new text end

new text begin Subd. 3. new text end

new text begin License term. new text end

new text begin A license to practice is valid for a term of up to 24 months beginning on January 1 or commencing after initially fulfilling the license requirements and ending on December 31 of the following year. new text end

Sec. 15.

new text begin [153B.35] EMPLOYMENT BY AN ACCREDITED FACILITY; SCOPE OF PRACTICE. new text end

new text begin A licensed orthotist, prosthetist, pedorthist, assistant, or orthotic fitter may provide limited, supervised orthotic or prosthetic patient care services beyond their licensed scope of practice if all of the following conditions are met: new text end

new text begin (1) the licensee is employed by a patient care facility that is accredited by a national accrediting organization in orthotics, prosthetics, and pedorthics; new text end

new text begin (2) written objective criteria are documented by the accredited facility to describe the knowledge and skills required by the licensee to demonstrate competency to provide additional specific and limited orthotic or prosthetic patient care services that are outside the licensee's scope of practice; new text end

new text begin (3) the licensee provides orthotic or prosthetic patient care only at the direction of a supervisor who is licensed as an orthotist, pedorthist, or prosthetist who is employed by the facility to provide the specific orthotic or prosthetic patient care or services that are outside the licensee's scope of practice; and new text end

new text begin (4) the supervised orthotic or prosthetic patient care occurs in compliance with facility accreditation standards. new text end

Sec. 16.

new text begin [153B.40] CONTINUING EDUCATION. new text end

new text begin Subdivision 1. new text end

new text begin Requirement. new text end

new text begin Each licensee shall obtain the number of continuing education hours required by the certifying board to maintain certification status pursuant to the specific license category. new text end

new text begin Subd. 2. new text end

new text begin Proof of attendance. new text end

new text begin A licensee must submit to the board proof of attendance at approved continuing education programs during the license renewal period in which it was attended in the form of a certificate, statement of continuing education credits from the American Board for Certification in Orthotics, Prosthetics, and Pedorthics or the Board of Certification/Accreditation, descriptive receipt, or affidavit. The board may conduct random audits. new text end

new text begin Subd. 3. new text end

new text begin Extension of continuing education requirements. new text end

new text begin For good cause, a licensee may apply to the board for a six-month extension of the deadline for obtaining the required number of continuing education credits. No more than two consecutive extensions may be granted. For purposes of this subdivision, "good cause" includes unforeseen hardships such as illness, family emergency, or military call-up. new text end

Sec. 17.

new text begin [153B.45] LICENSE RENEWAL. new text end

new text begin Subdivision 1. new text end

new text begin Submission of license renewal application. new text end

new text begin A licensee must submit to the board a license renewal application on a form provided by the board together with the license renewal fee. The completed form must be postmarked no later than January 1 in the year of renewal. The form must be signed by the licensee in the place provided for the renewal applicant's signature, include evidence of participation in approved continuing education programs, and any other information as the board may reasonably require. new text end

new text begin Subd. 2. new text end

new text begin Renewal application postmarked after January 1. new text end

new text begin A renewal application postmarked after January 1 in the renewal year shall be returned to the licensee for addition of the late renewal fee. A license renewal application postmarked after January 1 in the renewal year is not complete until the late renewal fee has been received by the board. new text end

new text begin Subd. 3. new text end

new text begin Failure to submit renewal application. new text end

new text begin (a) At any time after January 1 of the applicable renewal year, the board shall send notice to a licensee who has failed to apply for license renewal. The notice shall be mailed to the licensee at the last address on file with the board and shall include the following information: new text end

new text begin (1) that the licensee has failed to submit application for license renewal; new text end

new text begin (2) the amount of renewal and late fees; new text end

new text begin (3) information about continuing education that must be submitted in order for the license to be renewed; new text end

new text begin (4) that the licensee must respond within 30 calendar days after the notice was sent by the board; and new text end

new text begin (5) that the licensee may voluntarily terminate the license by notifying the board or may apply for license renewal by sending the board a completed renewal application, license renewal and late fees, and evidence of compliance with continuing education requirements. new text end

new text begin (b) Failure by the licensee to notify the board of the licensee's intent to voluntarily terminate the license or to submit a license renewal application shall result in expiration of the license and termination of the right to practice. The expiration of the license and termination of the right to practice shall not be considered disciplinary action against the licensee. new text end

new text begin (c) A license that has been expired under this subdivision may be reinstated. new text end

Sec. 18.

new text begin [153B.50] NAME AND ADDRESS CHANGE. new text end

new text begin (a) A licensee who has changed names must notify the board in writing within 90 days and request a revised license. The board may require official documentation of the legal name change. new text end

new text begin (b) A licensee must maintain with the board a correct mailing address to receive board communications and notices. A licensee who has changed addresses must notify the board in writing within 90 days. Mailing a notice by United States mail to a licensee's last known mailing address constitutes valid mailing. new text end

Sec. 19.

new text begin [153B.55] INACTIVE STATUS. new text end

new text begin (a) A licensee who notifies the board in the format required by the board may elect to place the licensee's credential on inactive status and shall be excused from payment of renewal fees until the licensee notifies the board in the format required by the board of the licensee's plan to return to practice. new text end

new text begin (b) A person requesting restoration from inactive status shall be required to pay the current renewal fee and comply with section 153B.45. new text end

new text begin (c) A person whose license has been placed on inactive status shall not practice in this state. new text end

Sec. 20.

new text begin [153B.60] LICENSE LAPSE DUE TO MILITARY SERVICE. new text end

new text begin A licensee whose license has expired while on active duty in the armed forces of the United States, with the National Guard while called into service or training, or while in training or education preliminary to induction into military service may have the licensee's license renewed or restored without paying a late fee or license restoration fee if the licensee provides verification to the board within two years of the termination of service obligation. new text end

Sec. 21.

new text begin [153B.65] ENDORSEMENT. new text end

new text begin The board may license, without examination and on payment of the required fee, an applicant who is an orthotist, prosthetist, prosthetist orthotist, pedorthist, assistant, or fitter who is certified by the American Board for Certification in Orthotics, Prosthetics, and Pedorthics or a national certification organization with educational, experiential, and testing standards equal to or higher than the licensing requirements in Minnesota. new text end

Sec. 22.

new text begin [153B.70] GROUNDS FOR DISCIPLINARY ACTION. new text end

new text begin (a) The board may refuse to issue or renew a license, revoke or suspend a license, or place on probation or reprimand a licensee for one or any combination of the following: new text end

new text begin (1) making a material misstatement in furnishing information to the board; new text end

new text begin (2) violating or intentionally disregarding the requirements of this chapter; new text end

new text begin (3) conviction of a crime, including a finding or verdict of guilt, an admission of guilt, or a no-contest plea, in this state or elsewhere, reasonably related to the practice of the profession. Conviction, as used in this clause, includes a conviction of an offense which, if committed in this state, would be deemed a felony, gross misdemeanor, or misdemeanor, without regard to its designation elsewhere, or a criminal proceeding where a finding or verdict of guilty is made or returned but the adjudication of guilt is either withheld or not entered; new text end

new text begin (4) making a misrepresentation in order to obtain or renew a license; new text end

new text begin (5) displaying a pattern of practice or other behavior that demonstrates incapacity or incompetence to practice; new text end

new text begin (6) aiding or assisting another person in violating the provisions of this chapter; new text end

new text begin (7) failing to provide information within 60 days in response to a written request from the board, including documentation of completion of continuing education requirements; new text end

new text begin (8) engaging in dishonorable, unethical, or unprofessional conduct; new text end

new text begin (9) engaging in conduct of a character likely to deceive, defraud, or harm the public; new text end

new text begin (10) inability to practice due to habitual intoxication, addiction to drugs, or mental or physical illness; new text end

new text begin (11) being disciplined by another state or territory of the United States, the federal government, a national certification organization, or foreign nation, if at least one of the grounds for the discipline is the same or substantially equivalent to one of the grounds in this section; new text end

new text begin (12) directly or indirectly giving to or receiving from a person, firm, corporation, partnership, or association a fee, commission, rebate, or other form of compensation for professional services not actually or personally rendered; new text end

new text begin (13) incurring a finding by the board that the licensee, after the licensee has been placed on probationary status, has violated the conditions of the probation; new text end

new text begin (14) abandoning a patient or client; new text end

new text begin (15) willfully making or filing false records or reports in the course of the licensee's practice including, but not limited to, false records or reports filed with state or federal agencies; new text end

new text begin (16) willfully failing to report child maltreatment as required under the Maltreatment of Minors Act, section 626.556; or new text end

new text begin (17) soliciting professional services using false or misleading advertising. new text end

new text begin (b) A license to practice is automatically suspended if (1) a guardian of a licensee is appointed by order of a court pursuant to sections 524.5-101 to 524.5-502, for reasons other than the minority of the licensee, or (2) the licensee is committed by order of a court pursuant to chapter 253B. The license remains suspended until the licensee is restored to capacity by a court and, upon petition by the licensee, the suspension is terminated by the board after a hearing. The licensee may be reinstated to practice, either with or without restrictions, by demonstrating clear and convincing evidence of rehabilitation. The regulated person is not required to prove rehabilitation if the subsequent court decision overturns previous court findings of public risk. new text end

new text begin (c) If the board has probable cause to believe that a licensee or applicant has violated paragraph (a), clause (10), it may direct the person to submit to a mental or physical examination. For the purpose of this section, every person is deemed to have consented to submit to a mental or physical examination when directed in writing by the board and to have waived all objections to the admissibility of the examining physician's testimony or examination report on the grounds that the testimony or report constitutes a privileged communication. Failure of a regulated person to submit to an examination when directed constitutes an admission of the allegations against the person, unless the failure was due to circumstances beyond the person's control, in which case a default and final order may be entered without the taking of testimony or presentation of evidence. A regulated person affected under this paragraph shall at reasonable intervals be given an opportunity to demonstrate that the person can resume the competent practice of the regulated profession with reasonable skill and safety to the public. In any proceeding under this paragraph, neither the record of proceedings nor the orders entered by the board shall be used against a regulated person in any other proceeding. new text end

new text begin (d) In addition to ordering a physical or mental examination, the board may, notwithstanding section 13.384 or 144.293, or any other law limiting access to medical or other health data, obtain medical data and health records relating to a licensee or applicant without the person's or applicant's consent if the board has probable cause to believe that a licensee is subject to paragraph (a), clause (10). The medical data may be requested from a provider as defined in section 144.291, subdivision 2, paragraph (i), an insurance company, or a government agency, including the Department of Human Services. A provider, insurance company, or government agency shall comply with any written request of the board under this section and is not liable in any action for damages for releasing the data requested by the board if the data are released pursuant to a written request under this section, unless the information is false and the provider giving the information knew, or had reason to know, the information was false. Information obtained under this section is private data on individuals as defined in section 13.02. new text end

new text begin (e) If the board issues an order of immediate suspension of a license, a hearing must be held within 30 days of the suspension and completed without delay. new text end

Sec. 23.

new text begin [153B.75] INVESTIGATION; NOTICE AND HEARINGS. new text end

new text begin The board has the authority to investigate alleged violations of this chapter, conduct hearings, and impose corrective or disciplinary action as provided in section 214.103. new text end

Sec. 24.

new text begin [153B.80] UNLICENSED PRACTICE. new text end

new text begin Subdivision 1. new text end

new text begin License required. new text end

new text begin Effective January 1, 2018, no individual shall practice as an orthotist, prosthetist, prosthetist orthotist, pedorthist, orthotic or prosthetic assistant, or orthotic fitter, unless the individual holds a valid license issued by the board under this chapter, except as permitted under section 153B.20 or 153B.35. new text end

new text begin Subd. 2. new text end

new text begin Designation. new text end

new text begin No individual shall represent themselves to the public as a licensed orthotist, prosthetist, prosthetist orthotist, pedorthist, orthotic or prosthetic assistant, or an orthotic fitter, unless the individual is licensed under this chapter. new text end

new text begin Subd. 3. new text end

new text begin Penalties. new text end

new text begin Any individual who violates this section is guilty of a misdemeanor. The board shall have the authority to seek a cease and desist order against any individual who is engaged in the unlicensed practice of a profession regulated by the board under this chapter. new text end

Sec. 25.

new text begin [153B.85] FEES. new text end

new text begin Subdivision 1. new text end

new text begin Fees. new text end

new text begin (a) The application fee for initial licensure shall not exceed $600. new text end

new text begin (b) The biennial renewal fee for a license to practice as an orthotist, prosthetist, prosthetist orthotist, or pedorthist shall not exceed $600. new text end

new text begin (c) The biennial renewal fee for a license to practice as an assistant or a fitter shall not exceed $300. new text end

new text begin (d) The fee for license restoration shall not exceed $600. new text end

new text begin (e) The fee for license verification shall not exceed $30. new text end

new text begin (f) The fee to obtain a list of licensees shall not exceed $25. new text end

new text begin Subd. 2. new text end

new text begin Proration of fees. new text end

new text begin For the first renewal period following initial licensure, the renewal fee is the fee specified in subdivision 1, paragraph (b) or (c), prorated to the nearest dollar that is represented by the ratio of the number of days the license is held in the initial licensure period to 730 days. new text end

new text begin Subd. 3. new text end

new text begin Late fee. new text end

new text begin The fee for late license renewal is the license renewal fee in effect at the time of renewal plus $100. new text end

new text begin Subd. 4. new text end

new text begin Nonrefundable fees. new text end

new text begin All fees are nonrefundable. new text end

new text begin Subd. 5. new text end

new text begin Deposit. new text end

new text begin Fees collected by the board under this section shall be deposited in the state government special revenue fund. new text end

Sec. 26.

Minnesota Statutes 2014, section 214.075, subdivision 3, is amended to read:

Subd. 3.

Consent form; fees; fingerprints.

(a) In order to effectuate the federal and state level, fingerprint-based criminal background check, the applicant or licensee must submit a completed criminal history records check consent form and a full set of fingerprints to the respective health-related licensing board or a designee in the manner and form specified by the board.

(b) The applicant or licensee is responsible for all fees associated with preparation of the fingerprints, the criminal records check consent form, and the criminal background check. The fees for the criminal records background check shall be set by the BCA and the FBI and are not refundable. The fees shall be submitted to the respective health-related licensing board by the applicant or licensee as prescribed by the respective board.

(c) All fees received by the health-related licensing boards under this subdivision shall be deposited in deleted text begin adeleted text end dedicated deleted text begin accountdeleted text end new text begin accountsnew text end in the special revenue fund and are appropriated to deleted text begin the Board of Nursing Home Administrators for the administrative services unitdeleted text end new text begin health-related licensing boardsnew text end to pay for the criminal background checks conducted by the Bureau of Criminal Apprehension and Federal Bureau of Investigation.

Sec. 27.

new text begin FIRST APPOINTMENTS, FIRST MEETING, AND FIRST CHAIR OF THE ORTHOTICS, PROSTHETICS, AND PEDORTHICS ADVISORY COUNCIL. new text end

new text begin The Board of Podiatric Medicine shall make its first appointments authorized under Minnesota Statutes, section 153B.25, to the Orthotics, Prosthetics, and Pedorthics Advisory Council, by September 1, 2016. The board shall designate four of its first appointees to serve terms that are coterminous with the governor. The chair of the Board of Podiatric Medicine or the chair's designee shall convene the first meeting of the council by November 1, 2016. The council must elect a chair from among its members at the first meeting of the council. new text end

Sec. 28.

new text begin INITIAL APPOINTMENTS; FIRST MEETING; AND FIRST CHAIR OF THE LICENSED GENETIC COUNSELOR ADVISORY COUNCIL. new text end

new text begin The Board of Medical Practice shall make its first appointments authorized under Minnesota Statutes, section 147F.15, to the Licensed Genetic Counselor Advisory Council by December 1, 2016. The chair of the Board of Medical Practice or the chair's designee shall convene the first meeting of the council by March 1, 2017. The council must elect a chair from its members at the first meeting of the council. new text end

ARTICLE 22

HUMAN SERVICES FORECAST ADJUSTMENTS

Section 1.

new text begin HUMAN SERVICES APPROPRIATION.new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown in parentheses, subtracted from the appropriations in Laws 2015, chapter 71, article 13, from the general fund or any fund named to the Department of Human Services for the purposes specified in this article, to be available for the fiscal year indicated for each purpose. The figures "2016" and "2017" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal year 2017. "The biennium" is fiscal years 2016 and 2017. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2016 new text end new text begin 2017 new text end

Sec. 2.

new text begin COMMISSIONER OF HUMAN SERVICES new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin (615,912,000) new text end new text begin $ new text end new text begin (518,891,000) new text end
new text begin Appropriations by Fund new text end
new text begin 2016 new text end new text begin 2017 new text end
new text begin General Fund new text end new text begin (307,806,000) new text end new text begin (246,029,000) new text end
new text begin Health Care Access Fund new text end new text begin (289,770,000) new text end new text begin (277,101,000) new text end
new text begin Federal TANF new text end new text begin (18,336,000) new text end new text begin 4,239,000 new text end

new text begin Subd. 2. new text end

new text begin Forecasted Programs new text end

new text begin (a) MFIP/DWP new text end
new text begin Appropriations by Fund new text end
new text begin General Fund new text end new text begin 9,833,000 new text end new text begin (8,799,000) new text end
new text begin Federal TANF new text end new text begin (20,225,000) new text end new text begin 4,212,000 new text end
new text begin (b) MFIP Child Care Assistance new text end new text begin (23,094,000) new text end new text begin (7,760,000) new text end
new text begin (c) General Assistance new text end new text begin (2,120,000) new text end new text begin (1,078,000) new text end
new text begin (d) Minnesota Supplemental Aid new text end new text begin (1,613,000) new text end new text begin (1,650,000) new text end
new text begin (e) Group Residential Housing new text end new text begin (8,101,000) new text end new text begin (7,954,000) new text end
new text begin (f) Northstar Care for Children new text end new text begin 2,231,000 new text end new text begin 4,496,000 new text end
new text begin (g) MinnesotaCare new text end new text begin (227,821,000) new text end new text begin (230,027,000) new text end

new text begin These appropriations are from the health care access fund. new text end

new text begin (h) Medical Assistance new text end
new text begin Appropriations by Fund new text end
new text begin General Fund new text end new text begin (294,773,000) new text end new text begin (243,700,000) new text end
new text begin Health Care Access Fund new text end new text begin (61,949,000) new text end new text begin (47,074,000) new text end
new text begin (i) Alternative Care Program new text end new text begin -0- new text end new text begin -0- new text end
new text begin (j) CCDTF Entitlements new text end new text begin 9,831,000 new text end new text begin 20,416,000 new text end

new text begin Subd. 3. new text end

new text begin Technical Activities new text end

new text begin 1,889,000 new text end new text begin 27,000 new text end

new text begin These appropriations are from the federal TANF fund. new text end

Sec. 3.

new text begin EFFECTIVE DATE. new text end

new text begin Sections 1 and 2 are effective the day following final enactment. new text end

ARTICLE 23

HEALTH AND HUMAN SERVICES APPROPRIATIONS

Section 1.

new text begin HEALTH AND HUMAN SERVICES APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown in parentheses, subtracted from the appropriations in Laws 2015, chapter 71, article 14, to the agencies and for the purposes specified in this article. The appropriations are from the general fund or other named fund and are available for the fiscal years indicated for each purpose. The figures "2016" and "2017" used in this article mean that the addition to or subtraction from the appropriation listed under them is available for the fiscal year ending June 30, 2016, or June 30, 2017, respectively. Supplemental appropriations and reductions to appropriations for the fiscal year ending June 30, 2016, are effective the day following final enactment unless a different effective date is explicit. new text end

new text begin APPROPRIATIONS new text end
new text begin Available for the Year new text end
new text begin Ending June 30 new text end
new text begin 2016 new text end new text begin 2017 new text end

Sec. 2.

new text begin COMMISSIONER OF HUMAN SERVICES new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin 6,851,000 new text end new text begin $ new text end new text begin 74,660,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2016 new text end new text begin 2017 new text end
new text begin General new text end new text begin 6,851,000 new text end new text begin 73,923,000 new text end
new text begin Health Care Access new text end new text begin -0- new text end new text begin 737,000 new text end

new text begin Subd. 2. new text end

new text begin Central Office Operations new text end

new text begin (a) Operations new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin -0- new text end new text begin 558,000 new text end
new text begin Health Care Access new text end new text begin -0- new text end new text begin 427,000 new text end

new text begin new text begin Base Adjustment.new text end The general fund base is decreased by $482,000 in fiscal year 2018 and $484,000 in fiscal year 2019. The health care access fund base is decreased by $376,000 in fiscal year 2018 and $376,000 in fiscal year 2019. new text end

new text begin (b) Children and Families new text end new text begin -0- new text end new text begin 132,000 new text end

new text begin new text begin Base Adjustment.new text end The general fund base is decreased by $132,000 in fiscal years 2018 and 2019. new text end

new text begin (c) Health Care new text end new text begin -0- new text end new text begin 374,000 new text end

new text begin new text begin Base Adjustment.new text end The general fund base is decreased by $43,000 in fiscal year 2018 and $43,000 in fiscal year 2019. new text end

new text begin (d) Continuing Care new text end new text begin -0- new text end new text begin 1,000 new text end

new text begin new text begin Base Adjustment.new text end The general fund base is increased by $1,000 in fiscal year 2018 and increased by $3,000 in fiscal year 2019. new text end

new text begin (e) Community Supports new text end new text begin -0- new text end new text begin 74,000 new text end

new text begin new text begin Base Adjustment.new text end The general fund base is increased by $469,000 in fiscal year 2018 and $429,000 in fiscal year 2019. new text end

new text begin Subd. 3. new text end

new text begin Forecasted Programs new text end

new text begin (a) Northstar Care for Children new text end new text begin -0- new text end new text begin -0- new text end

new text begin new text begin Base Adjustment.new text end The general fund base is increased by $8,802,000 in fiscal year 2018 and increased by $10,927,000 in fiscal year 2019. new text end

new text begin (b) MinnesotaCare new text end new text begin -0- new text end new text begin 33,000 new text end

new text begin This appropriation is from the health care access fund. new text end

new text begin (c) Medical Assistance new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin -0- new text end new text begin 5,092,000 new text end
new text begin Health Care Access new text end new text begin -0- new text end new text begin 277,000 new text end
new text begin (d) Consolidated Chemical Dependency Treatment Fund new text end new text begin -0- new text end new text begin 2,104,000 new text end

new text begin CCDTF Transfer. Notwithstanding Minnesota Statutes, section 254B.06, subdivision 1, in fiscal year 2017, the commissioner shall transfer $2,000,000 from the consolidated chemical dependency treatment fund administrative account in the special revenue fund to the general fund. This is a onetime transfer. new text end

new text begin Subd. 4. new text end

new text begin Grant Programs new text end

new text begin (a) Children's Services Grants new text end new text begin -0- new text end new text begin 800,000 new text end

new text begin new text begin American Indian Child Welfare Initiative.new text end $800,000 in fiscal year 2017 is for planning efforts to expand the American Indian Child Welfare Initiative authorized under Minnesota Statutes, section 256.01, subdivision 14b. Of this appropriation, $400,000 is for grants to the Mille Lacs Band of Ojibwe and $400,000 is for grants to the Red Lake Nation. This is a onetime appropriation. new text end

new text begin new text begin Base Adjustment.new text end The general fund base is decreased by $800,000 in fiscal year 2018 and $800,000 in fiscal year 2019. new text end

new text begin (b) Child and Community Service Grants new text end new text begin -0- new text end new text begin 1,900,000 new text end

new text begin new text begin White Earth Band of Ojibwe Human Services Initiative Project.new text end $1,400,000 in fiscal year 2017 is for a grant to the White Earth Band of Ojibwe for the direct implementation and administrative costs of the White Earth Human Services Initiative Project authorized under Laws 2011, First Special Session chapter 9, article 9, section 18. new text end

new text begin new text begin Red Lake Nation Human Services Initiative Project.new text end $500,000 in fiscal year 2017 is for a grant to the Red Lake Nation for the direct implementation and administrative costs of the Red Lake Human Services Initiative Project authorized under Minnesota Statutes, section 256.01, subdivision 2, paragraph (a), clause (7). new text end

new text begin (c) Child and Economic Support Grants new text end new text begin -0- new text end new text begin 66,000 new text end

new text begin new text begin Safe Harbor for Sexually Exploited Youth.new text end $33,000 in fiscal year 2017 is for emergency shelter and transitional and long-term housing beds for sexually exploited youth and youth at risk of sexual exploitation, and for statewide youth outreach workers to connect sexually exploited youth with shelter and services. The base for this appropriation is $750,000 in fiscal year 2018 and $750,000 in fiscal year 2019. The commissioner shall not use any portion of this appropriation nor of the base amounts in fiscal year 2018 and fiscal year 2019 for administrative costs. new text end

new text begin new text begin Base Level Adjustment.new text end The general fund base is increased by $2,134,000 in fiscal year 2018 and $2,134,000 in fiscal year 2019. new text end

new text begin (d) Adult Mental Health Grants new text end new text begin -0- new text end new text begin 200,000 new text end

new text begin new text begin Adult Mental Illness Crisis Housing Assistance Program.new text end The general fund appropriation for the adult mental illness crisis housing assistance program is decreased by $300,000 in fiscal year 2017. The general fund appropriation is increased by $300,000 in fiscal year 2017 for expanding eligibility to include persons with serious mental illness under Minnesota Statutes, section 245.99, subdivision 2. new text end

new text begin new text begin Integrated Behavioral Health Care Coordination Demonstration Project.new text end $200,000 in fiscal year 2017 is for a grant to the Zumbro Valley Health Center. The grant shall be used to continue a pilot project to test an integrated behavioral health care coordination model. The grant recipient must report measurable outcomes to the commissioner of human services by December 1, 2018. This is a onetime appropriation and is available until June 30, 2018. new text end

new text begin new text begin Base Adjustment.new text end The general fund base is decreased by $200,000 in fiscal year 2018 and is decreased by $200,000 in fiscal year 2019. new text end

new text begin (e) Child Mental Health Grants new text end new text begin -0- new text end new text begin 33,000 new text end

new text begin new text begin School-Linked Mental Health Grants.new text end $33,000 in fiscal year 2017 is for children's mental health grants under Minnesota Statutes, section 245.4889, subdivision 1, paragraph (b), clause (8), for current grantees to expand services to school buildings, school districts, or counties that do not have school-linked mental health available, and to provide training to grantees on the use of evidence-based practices. The general fund base for this appropriation is $1,450,000 in fiscal year 2018 and $1,450,000 in fiscal year 2019. The amount in fiscal year 2019 shall be awarded through a competitive process open to all eligible grantees as part of a new grant cycle. This appropriation does not include additional administrative money. new text end

new text begin new text begin Base Adjustment.new text end The general fund base is increased by $1,417,000 in fiscal years 2018 and 2019. new text end

new text begin (f) Chemical Dependency Treatment Support Grants new text end new text begin -0- new text end new text begin 34,000 new text end

new text begin new text begin Peer Specialists.new text end $34,000 in fiscal year 2017 from the general fund is for grants to recovery community organizations to train, hire, and supervise peer specialists to work with underserved populations as part of the continuum of care for substance use disorders. Recovery community organizations located in Rochester, Moorhead, and the Twin Cities metropolitan area are eligible to receive grant funds. The general fund base for this appropriation is $725,000 in fiscal year 2018 and $725,000 in fiscal year 2019. new text end

new text begin new text begin Base Adjustment.new text end The general fund base is increased by $691,000 in fiscal years 2018 and 2019. new text end

new text begin Subd. 5. new text end

new text begin DCT State-Operated Services new text end

new text begin Allocation of Funds. The commissioner may allocate the appropriations in this subdivision to ensure a safe environment at the Minnesota Security Hospital and other hospitals in direct care and treatment state-operated services. Any reallocation of the appropriations under this subdivision must be reported in the report required under Minnesota Statutes, section 256.01, subdivision 41. new text end

new text begin (a) DCT State-Operated Services Mental Health new text end new text begin 1,256,000 new text end new text begin 33,830,000 new text end

new text begin new text begin Restore Funds Transferred to Minnesota State-Operated Community Services. new text end $14,000,000 in fiscal year 2017 is to restore funds transferred to the enterprise fund for state-operated community services in fiscal year 2016. This is a onetime appropriation. new text end

new text begin new text begin Community Behavioral Health Hospitals Full Capacity Staffing. new text end $19,678,000 in fiscal year 2017 is to increase staffing to a level sufficient to operate the community behavioral health hospitals at full licensed capacity. The base for this appropriation is $25,879,000 in fiscal year 2018 and $25,879,000 in fiscal year 2019. new text end

new text begin new text begin Anoka-Metro Regional Treatment Center Nursing Float Pool.new text end $788,000 in fiscal year 2017 is for a nursing float pool for weekend coverage at the Anoka-Metro Regional Treatment Center. The base for this appropriation is $1,526,000 in fiscal year 2018 and $1,526,000 in fiscal year 2019. new text end

new text begin new text begin Anoka-Metro Regional Treatment Center Increased Clinical Oversight.new text end $336,000 in fiscal year 2017 is for increased clinical oversight at the Anoka-Metro Regional Treatment Center. The base for this appropriation is $632,000 in fiscal year 2018 and $632,000 in fiscal year 2019. new text end

new text begin new text begin Base Adjustment.new text end The general fund base is decreased by $7,149,000 in fiscal year 2018 and $7,149,000 in fiscal year 2019. new text end

new text begin (b) DCT State-Operated Services Enterprise Services new text end new text begin -0- new text end new text begin 14,000,000 new text end

new text begin new text begin State-Operated Community Services.new text end $14,000,000 in fiscal year 2017 is for the Minnesota state-operated community services program. This is a onetime appropriation. The commissioner must transfer $14,000,000 in fiscal year 2017 to the enterprise fund for Minnesota state-operated community services. This is a onetime transfer. new text end

new text begin new text begin Base Adjustment.new text end The general fund base is decreased by $14,000,000 in fiscal year 2018 and $14,000,000 in fiscal year 2019. new text end

new text begin (c) DCT State-Operated Services Minnesota Security Hospital new text end new text begin 2,200,000 new text end new text begin 10,056,000 new text end

new text begin new text begin Competency Restoration Program.new text end $6,754,000 in fiscal year 2017 is for the development of a new residential competency restoration program to be operated by state-operated forensic services. The commissioner shall use this appropriation to make available 20 hospital beds at Anoka Metro Regional Treatment Center and 12 secure beds at the Minnesota Security Hospital. The base for this appropriation is $8,423,000 in fiscal year 2018 and $8,423,000 in fiscal year 2019. new text end

new text begin new text begin Base Adjustment.new text end The general fund base is increased by $2,490,000 in fiscal year 2018 and $2,490,000 in fiscal year 2019. new text end

new text begin Subd. 6. new text end

new text begin DCT Minnesota Sex Offender Program new text end

new text begin 3,395,000 new text end new text begin 4,669,000 new text end

new text begin new text begin Base Adjustment.new text end The general fund base is increased by $788,000 in fiscal year 2018 and $788,000 in fiscal year 2019. new text end

Sec. 3.

new text begin COMMISSIONER OF HEALTH new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 2,214,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2016 new text end new text begin 2017 new text end
new text begin General new text end new text begin -0- new text end new text begin 33,000 new text end
new text begin State Government Special Revenue new text end new text begin -0- new text end new text begin 146,000 new text end
new text begin Health Care Access new text end new text begin -0- new text end new text begin 2,035,000 new text end

new text begin The appropriations for each purpose are shown in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Health Improvement new text end

new text begin Appropriations by Fund new text end
new text begin General new text end new text begin -0- new text end new text begin 33,000 new text end
new text begin Health Care Access new text end new text begin -0- new text end new text begin 2,035,000 new text end

new text begin new text begin Safe Harbor for Sexually Exploited Youth.new text end $33,000 in fiscal year 2017 is from the general fund for trauma-informed, culturally specific services for exploited youth. The base for this appropriation is $750,000 in fiscal year 2018 and $750,000 in fiscal year 2019. Neither the appropriation in fiscal year 2017 nor the base amounts in fiscal years 2018 and 2019 may be used for administration. new text end

new text begin new text begin Greater Minnesota Family Medicine Residency.new text end $1,035,000 in fiscal year 2017 is from the health care access fund for the greater Minnesota family medicine residency grant program under Minnesota Statutes, section 144.1912. The commissioner may use up to $35,000 for administration. new text end

new text begin new text begin Medical Education.new text end $1,000,000 in fiscal year 2017 from the health care access fund is for the medical education program under Minnesota Statutes, section 62J.692. new text end

new text begin new text begin Base Adjustments.new text end The general fund base is increased by $717,000 in fiscal year 2018 and $717,000 in fiscal year 2019. new text end

new text begin Subd. 3. new text end

new text begin Health Protection new text end

new text begin -0- new text end new text begin 146,000 new text end

new text begin This appropriation is from the state government special revenue fund. new text end

new text begin new text begin Base Adjustment.new text end The state government special revenue fund base is decreased by $219,000 in fiscal year 2018 and $156,000 in fiscal year 2019. new text end

Sec. 4.

new text begin HEALTH-RELATED BOARDS new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin $ new text end new text begin 195,000 new text end new text begin $ new text end new text begin 352,000 new text end

new text begin This appropriation is from the state government special revenue fund. new text end

new text begin Subd. 2. new text end

new text begin Board of Dentistry new text end

new text begin (850,000) new text end new text begin (864,000) new text end

new text begin Subd. 3. new text end

new text begin Board of Marriage and Family Therapy new text end

new text begin 40,000 new text end new text begin 50,000 new text end

new text begin Subd. 4. new text end

new text begin Board of Medical Practice new text end

new text begin -0- new text end new text begin 22,000 new text end

new text begin new text begin Genetic Counselor Licensing.new text end $22,000 in fiscal year 2017 is from the state government special revenue fund for genetic counselor licensure activities under Minnesota Statutes, chapter 147F. new text end

new text begin Subd. 5. new text end

new text begin Board of Pharmacy new text end

new text begin 115,000 new text end new text begin 145,000 new text end

new text begin Subd. 6. new text end

new text begin Board of Physical Therapy new text end

new text begin 890,000 new text end new text begin 924,000 new text end

new text begin Health Professional Services Program. Of this appropriation, $850,000 in fiscal year 2016 and $864,000 in fiscal year 2017 are from the state government special revenue fund for the health professional services program. new text end

new text begin Subd. 7. new text end

new text begin Board of Podiatric Medicine new text end

new text begin -0- new text end new text begin 75,000 new text end

new text begin new text begin Orthotist, Prosthetist, and Pedorthist Licensing.new text end $75,000 in fiscal year 2017 is from the state government special revenue fund for licensure activities under the Minnesota Orthotists, Prosthetist, and Pedorthist Practice Act, Minnesota Statutes, chapter 153B. The base for this appropriation is $112,000 in fiscal year 2018 and $112,000 in fiscal year 2019. new text end

new text begin Base Adjustment. The state government special revenue fund base is increased by $37,000 in fiscal year 2018 and $37,000 in fiscal year 2019. new text end

Sec. 5.

new text begin OMBUDSMAN FOR MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES new text end

new text begin $ new text end new text begin -0- new text end new text begin $ new text end new text begin 250,000 new text end

Sec. 6.

new text begin DEPARTMENT OF COMMERCE new text end

new text begin $ new text end new text begin (210,000) new text end new text begin $ new text end new text begin (213,000) new text end

Sec. 7.

Laws 2015, chapter 71, article 14, section 4, subdivision 3, is amended to read:

Subd. 3.

Board of Dentistry

2,192,000 2,206,000

deleted text begin This appropriation includes $864,000 in fiscal year 2016 and $878,000 in fiscal year 2017 for the health professional services program. deleted text end

Sec. 8.

new text begin DIRECTION TO COMMISSIONER OF MANAGEMENT AND BUDGET. new text end

new text begin In making determinations under Minnesota Statutes, section 295.52, subdivision 8, the commissioner of management and budget in fiscal year 2017 only shall not include $74,000,000 of the transfer under Minnesota Statutes, section 16A.724, subdivision 2, paragraph (a), as an expenditure or transfer of the health care access fund in determining the ratio of revenues to expenditures and transfers when making any determination of tax rate reductions under that subdivision. new text end

Sec. 9.

new text begin EXPIRATION OF UNCODIFIED LANGUAGE. new text end

new text begin All uncodified language contained in this article expires on June 30, 2017, unless a different expiration date is explicit. new text end

Sec. 10.

new text begin EFFECTIVE DATE. new text end

new text begin This article is effective the day following final enactment. new text end

ARTICLE 24

TEACHERS

Section 1.

Minnesota Statutes 2014, section 122A.09, as amended by Laws 2015, chapter 69, article 2, section 3, and Laws 2015, First Special Session chapter 3, article 2, sections 9 to 11, is amended to read:

122A.09 DUTIES.

Subdivision 1.

Code of ethics.

The Board of Teaching must develop by rule a code of ethics covering standards of professional teaching practices, including areas of ethical conduct and professional performance and methods of enforcement.

Subd. 2.

Advise members of profession.

The board must act in an advisory capacity to members of the profession in matters of interpretation of the code of ethics.

Subd. 3.

Election of chair and officers.

The board shall elect a chair and such other officers as it may deem necessary.

Subd. 4.

License and rules.

(a) The board must adopt rules to license public school teachers and interns subject to chapter 14.

(b) The board must require all candidates for teacher licensure to demonstrate a passing score on a board-adopted skills examination in reading, writing, and mathematics, as a requirement fornew text begin annew text end initial deleted text begin teacher licensuredeleted text end new text begin professional five-year teaching licensenew text end , except that the board may issue up to four deleted text begin temporary,deleted text end new text begin initial professionalnew text end one-year teaching licenses to an otherwise qualified candidate who has not yet passed the board-adopted skills exam. The board must require colleges and universities offering a board-approved teacher preparation program to provide remedial assistance to persons who did not achieve a qualifying score on the board-adopted skills examination, including those for whom English is a second language. The requirement to pass a board-adopted reading, writing, and mathematics skills examination does not apply to nonnative English speakers, as verified by qualified Minnesota school district personnel or Minnesota higher education faculty, who, after meeting the content and pedagogy requirements under this subdivision, apply for a teaching license to provide direct instruction in their native language or world language instruction under section 120B.022, subdivision 1. The Board of Teaching and the entity administering the content, pedagogy, and skills examinations must allow any individual who produces documentation of a disability in the form of an evaluation, 504 plan, or individual education program (IEP) to receive the same testing accommodations on the content, pedagogy, and skills examinations that the applicant received during their secondary or postsecondary education.

(c) The board must adopt rules to approve teacher preparation programs. The board, upon the request of a postsecondary student preparing for teacher licensure or a licensed graduate of a teacher preparation program, shall assist in resolving a dispute between the person and a postsecondary institution providing a teacher preparation program when the dispute involves an institution's recommendation for licensure affecting the person or the person's credentials. At the board's discretion, assistance may include the application of chapter 14.

(d) The board must provide the leadership and adopt rules for the redesign of teacher education programs to implement a research based, results-oriented curriculum that focuses on the skills teachers need in order to be effective. Among other components, teacher preparation programs may use the Minnesota State Colleges and Universities program model to provide a school-year-long student teaching program that combines clinical opportunities with academic coursework and in-depth student teaching experiences to offer students ongoing mentorship, coaching, and assessment, help to prepare a professional development plan, and structured learning experiences. The board shall implement new systems of teacher preparation program evaluation to assure program effectiveness based on proficiency of graduates in demonstrating attainment of program outcomes. Teacher preparation programs including alternative teacher preparation programs under section 122A.245, among other programs, must include a content-specific, board-approved, performance-based assessment that measures teacher candidates in three areas: planning for instruction and assessment; engaging students and supporting learning; and assessing student learning. The board's redesign rules must include creating flexible, specialized teaching licenses, credentials, and other endorsement forms to increase students' participation in language immersion programs, world language instruction, career development opportunities, work-based learning, early college courses and careers, career and technical programs, Montessori schools, and project and place-based learning, among other career and college ready learning offerings.

(e) The board must adopt rules requiring candidates for deleted text begin initialdeleted text end new text begin professional five-year teaching new text end licenses to pass an examination of general pedagogical knowledge and examinations of licensure-specific teaching skills. The rules shall be effective by September 1, 2001. The rules under this paragraph also must require candidates for initial licenses to teach prekindergarten or elementary students to pass, as part of the examination of licensure-specific teaching skills, test items assessing the candidates' knowledge, skill, and ability in comprehensive, scientifically based reading instruction under section 122A.06, subdivision 4, and their knowledge and understanding of the foundations of reading development, the development of reading comprehension, and reading assessment and instruction, and their ability to integrate that knowledge and understanding.

(f) The board must adopt rules requiring teacher educators to work directly with elementary or secondary school teachers in elementary or secondary schools to obtain periodic exposure to the elementary or secondary teaching environment.

(g) The board must grant licenses to interns and to candidates for deleted text begin initialdeleted text end new text begin professional five-year teachingnew text end licenses based on appropriate professional competencies that are aligned with the board's licensing system and students' diverse learning needs. All teacher candidates must have preparation in English language development and content instruction for English learners in order to be able to effectively instruct the English learners in their classrooms. The board must include these licenses in a statewide differentiated licensing system that creates new leadership roles for successful experienced teachers premised on a collaborative professional culture dedicated to meeting students' diverse learning needs in the 21st century, recognizes the importance of cultural and linguistic competencies, including the ability to teach and communicate in culturally competent and aware ways, and formalizes mentoring and induction for newly licensed teachers provided through a teacher support framework.

(h) The board must design and implement an assessment system which requires a candidate for an initial license and first continuing license to demonstrate the abilities necessary to perform selected, representative teaching tasks at appropriate levels.

(i) The board must receive recommendations from local committees as established by the board for the renewal of teaching licenses. The board must require new text begin a new text end licensed deleted text begin teachersdeleted text end new text begin teachernew text end who deleted text begin aredeleted text end new text begin isnew text end renewing a deleted text begin continuing licensedeleted text end new text begin professional five-year teaching licensenew text end to include in the renewal requirements further preparation in English language development and specially designed content instruction in English for English learners.

(j) The board must grant life licenses to those who qualify according to requirements established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and 214.10. The board must not establish any expiration date for application for life licenses.

(k) The board must adopt rules that require all licensed teachers who are renewing their deleted text begin continuing licensedeleted text end new text begin professional five-year teaching licensesnew text end to include in their renewal requirements further preparation in the areas of using positive behavior interventions and in accommodating, modifying, and adapting curricula, materials, and strategies to appropriately meet the needs of individual students and ensure adequate progress toward the state's graduation rule.

(l) In adopting rules to license public school teachers who provide health-related services for disabled children, the board shall adopt rules consistent with license or registration requirements of the commissioner of health and the health-related boards who license personnel who perform similar services outside of the school.

(m) The board must adopt rules that require all licensed teachers who are renewing their deleted text begin continuing licensedeleted text end new text begin professional five-year teaching licensesnew text end to include in their renewal requirements further reading preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect until they are approved by law. Teachers who do not provide direct instruction including, at least, counselors, school psychologists, school nurses, school social workers, audiovisual directors and coordinators, and recreation personnel are exempt from this section.

(n) The board must adopt rules that require all licensed teachers who are renewing their deleted text begin continuing licensedeleted text end new text begin professional five-year teaching licensesnew text end to include in their renewal requirements new text begin at least one hour of suicide prevention best practices in each licensure renewal period that are based on nationally recognized evidence-based programs and practices, among the continuing education credits required to renew a license under this paragraph, and new text end further preparation, first, in understanding the key warning signs of early-onset mental illness in children and adolescents and then, during subsequent licensure renewal periods, preparation may include providing a more in-depth understanding of students' mental illness trauma, accommodations for students' mental illness, parents' role in addressing students' mental illness, Fetal Alcohol Spectrum Disorders, autism, the requirements of section 125A.0942 governing restrictive procedures, and de-escalation methods, among other similar topics.

(o) The board must adopt rules by January 1, 2016, to license applicants under sections 122A.23 and 122A.245. The rules must permit applicants to demonstrate their qualifications through the board's recognition of a teaching license from another state in a similar content field, completion of a state-approved teacher preparation program, teaching experience as the teacher of record in a similar licensure field, depth of content knowledge, depth of content methods or general pedagogy, subject-specific professional development and contribution to the field, or classroom performance as determined by documented student growth on normed assessments or documented effectiveness on evaluations. The rules must adopt criteria for determining a "similar content field" and "similar licensure area."

Subd. 4a.

Teacher and administrator preparation and performance data; report.

(a) The Board of Teaching and the Board of School Administrators, in cooperation with the Minnesota Association of Colleges of Teacher Education and Minnesota colleges and universities offering board-adopted teacher or administrator preparation programs, annually must collect and report summary data on teacher and administrator preparation and performance outcomes, consistent with this subdivision. The Board of Teaching and the Board of School Administrators annually by June 1 must update and post the reported summary preparation and performance data on teachers and administrators from the preceding school years on a Web site hosted jointly by the boards.

(b) Publicly reported summary data on teacher preparation programs must include: student entrance requirements for each Board of Teaching-approved program, including grade point average for enrolling students in the preceding year; the average board-adopted skills examination or ACT or SAT scores of students entering the program in the preceding year; summary data on faculty qualifications, including at least the content areas of faculty undergraduate and graduate degrees and their years of experience either as kindergarten through grade 12 classroom teachers or school administrators; the average time resident and nonresident program graduates in the preceding year needed to complete the program; the current number and percent of students by program who graduated, received a standard Minnesota teaching license, and were hired to teach full time in their licensure field in a Minnesota district or school in the preceding year; the number of content area credits and other credits by undergraduate program that students in the preceding school year needed to complete to graduate; students' pass rates on skills and subject matter exams required for graduation in each program and licensure area in the preceding school year; survey results measuring student and graduate satisfaction with the program in the preceding school year; a standard measure of the satisfaction of school principals or supervising teachers with the student teachers assigned to a school or supervising teacher; and information under paragraphs (d) and (e). Program reporting must be consistent with subdivision 11.

(c) Publicly reported summary data on administrator preparation programs approved by the Board of School Administrators must include: summary data on faculty qualifications, including at least the content areas of faculty undergraduate and graduate degrees and their years of experience either as kindergarten through grade 12 classroom teachers or school administrators; the average time program graduates in the preceding year needed to complete the program; the current number and percent of students who graduated, received a standard Minnesota administrator license, and were employed as an administrator in a Minnesota school district or school in the preceding year; the number of credits by graduate program that students in the preceding school year needed to complete to graduate; survey results measuring student, graduate, and employer satisfaction with the program in the preceding school year; and information under paragraphs (f) and (g). Program reporting must be consistent with section 122A.14, subdivision 10.

(d) School districts annually by October 1 must report to the Board of Teaching the following information for all teachers who finished the probationary period and accepted a continuing contract position with the district from September 1 of the previous year through August 31 of the current year: the effectiveness category or rating of the teacher on the summative evaluation under section 122A.40, subdivision 8, or 122A.41, subdivision 5; the licensure area in which the teacher primarily taught during the three-year evaluation cycle; and the teacher preparation program preparing the teacher in the teacher's primary areas of instruction and licensure.

(e) School districts annually by October 1 must report to the Board of Teaching the following information for all probationary teachers in the district who were released or whose contracts were not renewed from September 1 of the previous year through August 31 of the current year: the licensure areas in which the probationary teacher taught; and the teacher preparation program preparing the teacher in the teacher's primary areas of instruction and licensure.

(f) School districts annually by October 1 must report to the Board of School Administrators the following information for all school principals and assistant principals who finished the probationary period and accepted a continuing contract position with the district from September 1 of the previous year through August 31 of the current year: the effectiveness category or rating of the principal or assistant principal on the summative evaluation under section 123B.147, subdivision 3; and the principal preparation program providing instruction to the principal or assistant principal.

(g) School districts annually by October 1 must report to the Board of School Administrators all probationary school principals and assistant principals in the district who were released or whose contracts were not renewed from September 1 of the previous year through August 31 of the current year.

Subd. 5.

Commissioner's representative to comment on proposed rule.

deleted text begin Prior to the adoption bydeleted text end new text begin Beforenew text end the Board of Teaching deleted text begin ofdeleted text end new text begin adoptsnew text end any rule deleted text begin whichdeleted text end new text begin thatnew text end must be submitted to public hearing, a representative of the commissioner shall appear before the Board of Teaching and at the hearing required deleted text begin pursuant todeleted text end new text begin undernew text end section 14.14, subdivision 1, to comment on the cost and educational implications of that proposed rule.

Subd. 6.

Register of persons licensed.

The executive secretary of the Board of Teaching shall keep a record of the proceedings of and a register of all persons licensed pursuant to the provisions of this chapter. The register must show the name, address, license number and the renewal of the license. The board must on July 1, of each year or as soon thereafter as is practicable, compile a list of such duly licensed teachers and transmit a copy of the list to the board. A copy of the register must be available during business hours at the office of the board to any interested person.

Subd. 7.

Commissioner's assistance; board money.

The commissioner shall provide all necessary materials and assistance for the transaction of the business of the Board of Teaching and all moneys received by the Board of Teaching shall be paid into the state treasury as provided by law. The expenses of administering sections 122A.01, 122A.05 to 122A.09, 122A.15, 122A.16, 122A.17, 122A.18, 122A.20, 122A.21, 122A.22, 122A.23, 122A.26, 122A.30, 122A.40, 122A.41, 122A.42, 122A.45, 122A.49, 122A.54, 122A.55, 122A.56, 122A.57, and 122A.58 which are incurred by the Board of Teaching shall be paid for from appropriations made to the Board of Teaching.

Subd. 8.

Fraud; gross misdemeanor.

A person who claims to be a licensed teacher without a valid existing license issued by the board or any person who employs fraud or deception in applying for or securing a license is guilty of a gross misdemeanor.

Subd. 9.

Board may adopt rules.

The Board of Teaching may adopt rules subject to the provisions of chapter 14 to implement sections 122A.05 to 122A.09, 122A.16, 122A.17, 122A.18, 122A.20, 122A.21, and 122A.23.

Subd. 10.

deleted text begin Variancesdeleted text end new text begin Permissionsnew text end .

(a) Notwithstanding subdivision 9 and section deleted text begin 14.05, subdivision 4deleted text end new text begin 14.055new text end , the Board of Teaching may grant deleted text begin a variancedeleted text end new text begin waiversnew text end to its rules upon application by a school district new text begin or a charter school new text end for purposes of implementing experimental programs in learning or management.

(b) To enable a school districtnew text begin or a charter schoolnew text end to meet the needs of students enrolled in an alternative education program and to enable licensed teachers instructing those students to satisfy content area licensure requirements, the Board of Teaching annually may permit a licensed teacher teaching in an alternative education program to instruct students in a content area for which the teacher is not licensed, consistent with paragraph (a).

(c) A special education license deleted text begin variancedeleted text end new text begin permissionnew text end issued by the Board of Teaching for a primary employer's low-incidence region deleted text begin shall bedeleted text end new text begin isnew text end valid in all low-incidence regions.

new text begin (d) The Board of Teaching may issue a one-year professional license under paragraph (a), which the board may renew two times, to allow a person holding a full credential from the American Montessori Society, a diploma from Association Montessori Internationale, or a certificate of completion from a program accredited by the Montessori Accreditation Council for Teacher Education to teach in a Montessori program operated by a school district or charter school. new text end

new text begin (e) The Board of Teaching may grant a one-year waiver, renewable two times, to allow individuals who hold a bachelor's degree from an accredited postsecondary institution, demonstrate occupational competency based on at least three years of full-time work experience in business or industry, and enroll and make satisfactory progress in an alternative preparation program leading to certification as a career and technical education instructor to teach career and technical education courses offered by a school district or charter school. Consistent with this paragraph and section 136F.361, the Board of Teaching must strongly encourage teacher preparation programs and institutions throughout Minnesota to develop alternative pathways for certifying and licensing high school career and technical education instructors and teachers, allowing such candidates to meet certification and licensure standards that demonstrate their content knowledge, classroom experience, and pedagogical practices and their qualifications based on a combination of occupational testing, professional certification or licensure, and long-standing work experience. new text end

Subd. 11.

Teacher preparation program reporting.

By December 31, 2018, and annually thereafter, the Board of Teaching shall report and publish on its Web site the cumulative summary results of at least three consecutive years of data reported to the board under subdivision 4a, paragraph (b). Where the data are sufficient to yield statistically reliable information and the results would not reveal personally identifiable information about an individual teacher, the board shall report the data by teacher preparation program.

new text begin EFFECTIVE DATE. new text end

new text begin Subdivision 4, paragraph (n), is effective the day following final enactment and applies to teachers renewing their teaching licenses beginning August 1, 2017. Subdivision 10, paragraphs (d) and (e) are effective for the 2016-2017 through 2018-2019 school years. new text end

Sec. 2.

Minnesota Statutes 2014, section 122A.16, is amended to read:

122A.16 deleted text begin HIGHLYdeleted text end QUALIFIED TEACHER DEFINED.

deleted text begin (a)deleted text end A qualified teacher is one holding a valid license, under this chapter, to perform the particular service for which the teacher is employed in a public school.

deleted text begin (b) For the purposes of the federal No Child Left Behind Act, a highly qualified teacher is one who holds a valid license under this chapter, including under section 122A.245, among other sections and is determined by local administrators as having highly qualified status according to the approved Minnesota highly qualified plan. Teachers delivering core content instruction must be deemed highly qualified at the local level and reported to the state via the staff automated reporting system. deleted text end

Sec. 3.

Minnesota Statutes 2014, section 122A.18, as amended by Laws 2015, First Special Session chapter 3, article 2, sections 14 and 15, is amended to read:

122A.18 BOARD TO ISSUE LICENSES.

Subdivision 1.

Authority to license.

(a) The Board of Teaching must license teachers, as defined in section 122A.15, subdivision 1, except for supervisory personnel, as defined in section 122A.15, subdivision 2.

(b) The Board of School Administrators must license supervisory personnel as defined in section 122A.15, subdivision 2, except for athletic coaches.

(c) Licenses under the jurisdiction of the Board of Teaching, the Board of School Administrators, and the commissioner of education must be issued through the licensing section of the department.

(d) The Board of Teaching and the Department of Education must enter into a data sharing agreement to share educational data at the E-12 level for the limited purpose of program approval and improvement for teacher education programs. The program approval process must include targeted redesign of teacher preparation programs to address identified E-12 student areas of concern.

(e) The Board of School Administrators and the Department of Education must enter into a data sharing agreement to share educational data at the E-12 level for the limited purpose of program approval and improvement for education administration programs. The program approval process must include targeted redesign of education administration preparation programs to address identified E-12 student areas of concern.

(f) For purposes of the data sharing agreements under paragraphs (d) and (e), the Board of Teaching, Board of School Administrators, and Department of Education may share private data, as defined in section 13.02, subdivision 12, on teachers and school administrators. The data sharing agreements must not include educational data, as defined in section 13.32, subdivision 1, but may include summary data, as defined in section 13.02, subdivision 19, derived from educational data.

Subd. 2.

Teacher and support personnel qualifications.

(a) The Board of Teaching must issue licenses under its jurisdiction to persons the board finds to be qualified and competent for their respective positions, including those meeting the standards adopted under section 122A.09, subdivision 4, paragraph deleted text begin (o)deleted text end new text begin (n)new text end .

(b) The board must require a candidate for teacher licensure to demonstrate a passing score on a board-adopted examination of skills in reading, writing, and mathematics, before being granted deleted text begin an initialdeleted text end new text begin a professional five-yearnew text end teaching license to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special education programs, except that the board may issue up to four temporary, one-year teaching licenses to an otherwise qualified candidate who has not yet passed a board-adopted skills exam. At the request of the employing school district or charter school, the Board of Teaching may issue deleted text begin a restricteddeleted text end new text begin an initial professional one-year teachingnew text end license to an otherwise qualified teacher not passing or demonstrating a passing score on a board-adopted skills examination in reading, writing, and mathematics. For purposes of this section, the deleted text begin restricteddeleted text end new text begin initial professional one-year teachingnew text end license issued by the board is limited to the current subject or content matter the teacher is employed to teach and limited to the district or charter school requesting the deleted text begin restricteddeleted text end new text begin initial professional one-year teachingnew text end license. If the board denies the request, it must provide a detailed response to the school administrator as to the reasons for the denial. The board must require colleges and universities offering a board approved teacher preparation program to make available upon request remedial assistance that includes a formal diagnostic component to persons enrolled in their institution who did not achieve a qualifying score on a board-adopted skills examination, including those for whom English is a second language. The colleges and universities must make available assistance in the specific academic areas of candidates' deficiency. School districts may make available upon request similar, appropriate, and timely remedial assistance that includes a formal diagnostic component to those persons employed by the district who completed their teacher education program, who did not achieve a qualifying score on a board-adopted skills examination, and who received deleted text begin a temporarydeleted text end new text begin an initial professional one-year teaching new text end license to teach in Minnesota. The Board of Teaching shall report annually to the education committees of the legislature on the total number of teacher candidates during the most recent school year taking a board-adopted skills examination, the number who achieve a qualifying score on the examination, the number who do not achieve a qualifying score on the examination, and the candidates who have not passed a content or pedagogy exam, disaggregated by categories of race, ethnicity, and eligibility for financial aid.

(c) The Board of Teaching must grant deleted text begin continuingdeleted text end new text begin professional five-year teaching new text end licenses only to those persons who have met board criteria for deleted text begin granting a continuingdeleted text end new text begin that new text end license, which includes passing a board-adopted skills examination in reading, writing, and mathematics, and the exceptions in section 122A.09, subdivision 4, paragraph (b), that are consistent with this paragraph. The requirement to pass a board-adopted reading, writing, and mathematics skills examination, does not apply to nonnative English speakers, as verified by qualified Minnesota school district personnel or Minnesota higher education faculty, who, after meeting the content and pedagogy requirements under this subdivision, apply for a new text begin professional five-year new text end teaching license to provide direct instruction in their native language or world language instruction under section 120B.022, subdivision 1.

(d) All colleges and universities approved by the board of teaching to prepare persons for teacher licensure must include in their teacher preparation programs a common core of teaching knowledge and skills to be acquired by all persons recommended for teacher licensure. Among other requirements, teacher candidates must demonstrate the knowledge and skills needed to provide appropriate instruction to English learners to support and accelerate their academic literacy, including oral academic language, and achievement in content areas in a regular classroom setting. This common core shall meet the standards developed by the interstate new teacher assessment and support consortium in its 1992 "model standards for beginning teacher licensing and development." Amendments to standards adopted under this paragraph are covered by chapter 14. The board of teaching shall report annually to the education committees of the legislature on the performance of teacher candidates on common core assessments of knowledge and skills under this paragraph during the most recent school year.

Subd. 2a.

Reading strategies.

(a) All colleges and universities approved by the Board of Teaching to prepare persons for classroom teacher licensure must include in their teacher preparation programs research-based best practices in reading, consistent with section 122A.06, subdivision 4, that enable the licensure candidate to know how to teach reading in the candidate's content areas. Teacher candidates must be instructed in using students' native languages as a resource in creating effective differentiated instructional strategies for English learners developing literacy skills. These colleges and universities also must prepare new text begin early childhood and elementary teacher new text end candidates for deleted text begin initial deleted text end new text begin professional five-year teachingnew text end licenses deleted text begin to teach prekindergarten or elementary students deleted text end for the deleted text begin assessment of reading instructiondeleted text end portion of the examination deleted text begin of licensure-specific teaching skillsdeleted text end under section 122A.09, subdivision 4, paragraph (e)new text begin , covering assessment of reading instructionnew text end .

(b) Board-approved teacher preparation programs for teachers of elementary education must require instruction deleted text begin in the application ofdeleted text end new text begin in applyingnew text end comprehensive, scientifically based, and balanced reading instruction programs that:

(1) teach students to read using foundational knowledge, practices, and strategies consistent with section 122A.06, subdivision 4, so that all students deleted text begin willdeleted text end achieve continuous progress in reading; and

(2) teach specialized instruction in reading strategies, interventions, and remediations that enable students of all ages and proficiency levels to become proficient readers.

(c) Nothing in this section limits the authority of a school district to select a school's reading program or curriculum.

Subd. 2b.

Reading specialist.

Not later than July 1, 2002, the Board of Teaching must adopt rules providing for deleted text begin thedeleted text end new text begin reading teacher new text end licensure deleted text begin of teachers of readingdeleted text end .

Subd. 3.

Supervisory and coach qualifications; code of ethics.

The commissioner of education must issue licenses under its jurisdiction to persons the commissioner finds to be qualified and competent for their respective positions under the rules it adopts. The commissioner of education may develop, by rule, a code of ethics for supervisory personnel covering standards of professional practices, including areas of ethical conduct and professional performance and methods of enforcement.

Subd. 3a.

Technology strategies.

All colleges and universities approved by the Board of Teaching to prepare persons for classroom teacher licensure must include in their teacher preparation programs the knowledge and skills teacher candidates need to deliver digital and blended learning and curriculum and engage students with technology.

Subd. 4.

Expiration and renewal.

(a) Each license the Department of Education issues through its licensing section must bear the date of issuenew text begin and the name of the state-approved teacher training providernew text end . Licenses must expire and be renewed according to the respective rules the Board of Teaching, the Board of School Administrators, or the commissioner of education adopts. Requirements for renewing a license must include showing satisfactory evidence of successful teaching or administrative experience for at least one school year during the period covered by the license in grades or subjects for which the license is valid or completing such additional preparation as the Board of Teaching prescribes. The Board of School Administrators shall establish requirements for renewing the licenses of supervisory personnel except athletic coaches. The State Board of Teaching shall establish requirements for renewing the licenses of athletic coaches.

(b) deleted text begin Relicensuredeleted text end Applicants new text begin for license renewal new text end who have been employed as a teacher during the renewal period of their expiring license, as a condition of deleted text begin relicensuredeleted text end new text begin license renewalnew text end , must present to their local continuing education and relicensure committee or other local relicensure committee evidence of work that demonstrates professional reflection and growth in best teaching practices, including among other things, practices in meeting the varied needs of English learners, from young children to adults under section 124D.59, subdivisions 2 and 2a. The applicant must include a reflective statement of professional accomplishment and the applicant's own assessment of professional growth showing evidence of:

(1) support for student learning;

(2) use of best practices techniques and their applications to student learning;

(3) collaborative work with colleagues that includes examples of collegiality such as attested-to committee work, collaborative staff development programs, and professional learning community work; or

(4) continual professional development that may include (i) job-embedded or other ongoing formal professional learning or (ii) for teachers employed for only part of the renewal period of their expiring license, other similar professional development efforts made during the relicensure period.

The Board of Teaching must ensure that its teacher relicensing requirements also include this paragraph.

(c) The Board of Teaching shall offer alternative deleted text begin continuing relicensuredeleted text end options new text begin for license renewal new text end for teachers who are accepted into and complete the National Board for Professional Teaching Standards certification process, and offer additional continuing relicensure options for teachers who earn National Board for Professional Teaching Standards certification. Continuing relicensure requirements for teachers who do not maintain National Board for Professional Teaching Standards certification are those the board prescribes, consistent with this section.

Subd. 4a.

Limited provisional licenses.

The board may grant two-year provisional licenses to licensure candidates in a field in which they were not previously licensed or in a field in which a shortage of licensed teachers exists. A shortage is defined as an inadequate supply of licensed personnel in a given licensure area as determined by the commissioner.

deleted text begin Subd. 5. deleted text end

deleted text begin Effective date. deleted text end

deleted text begin Nothing contained herein shall be construed as affecting the validity of a permanent certificate or license issued prior to July 1, 1969. deleted text end

Subd. 6.

Human relations.

The Board of Teaching deleted text begin and the commissioner of educationdeleted text end shall accept training programs completed through Peace Corps, VISTA, or Teacher Corps in lieu of deleted text begin completion ofdeleted text end new text begin completingnew text end the human relations component of the training program for purposes of issuing or renewing anew text begin teachingnew text end license deleted text begin in educationdeleted text end .

Subd. 7.

Limited provisional licenses.

The Board of Teaching may grant provisional licenses, which shall be valid for two years, in fields in which licenses were not issued previously or in fields in which a shortage of licensed teachers exists. A shortage is defined as a lack of or an inadequate supply of licensed personnel within a given licensure area in a school district that has notified the Board of Teaching of the shortage and has applied to the Board of Teaching for provisional licenses for that district's licensed staff.

Subd. 7a.

Permission to substitute teach.

(a) The Board of Teaching may allow a person who is enrolled in and making satisfactory progress in a board-approved teacher program and who has successfully completed student teaching to be employed as a short-call substitute teacher.

(b) The Board of Teaching may issue a lifetime qualified short-call substitute teaching license to a person who:

(1) was a qualified teacher under section 122A.16 while holding a deleted text begin continuing deleted text end new text begin professionalnew text end five-year teaching license issued by the board, and receives a retirement annuity from the Teachers Retirement Association or the St. Paul Teachers Retirement Fund Association;

(2) holds an out-of-state teaching license and receives a retirement annuity as a result of the person's teaching experience; or

(3) held a deleted text begin continuingdeleted text end new text begin professionalnew text end five-yearnew text begin teachingnew text end license issued by the board, taught at least three school years in an accredited nonpublic school in Minnesota, and receives a retirement annuity as a result of the person's teaching experience.

A person holding a lifetime qualified short-call substitute teaching license is not required to complete continuing education clock hours. A person holding this license may reapply to the board for a deleted text begin continuingdeleted text end new text begin professionalnew text end five-yearnew text begin teachingnew text end license and must again complete continuing education clock hours one school year after receiving the deleted text begin continuing deleted text end new text begin professionalnew text end five-yearnew text begin teachingnew text end license.

Subd. 7b.

Temporary limited licenses; personnel variances.

(a) The Board of Teaching must accept applications for a temporary limited teaching license beginning July 1 of the school year for which the license is requested and must issue or deny the temporary limited teaching license within 30 days of receiving the complete application.

(b) The Board of Teaching must accept applications for a personnel variance beginning July 1 of the school year for which the variance is requested and must issue or deny the personnel variance within 30 days of receiving the complete application.

Subd. 7c.

Temporary military license.

The Board of Teaching shall establish a temporary license in accordance with section 197.4552 for teaching. The fee for a temporary license under this subdivision shall be $87.90 for an online application or $86.40 for a paper application.

Subd. 8.

Background checks.

(a) The Board of Teaching and the commissioner of education must request a criminal history background check from the superintendent of the Bureau of Criminal Apprehension on all new text begin first-time teaching new text end applicants for deleted text begin initial deleted text end licenses under their jurisdiction. deleted text begin An application for a license under this section must be accompanied bydeleted text end new text begin Applicants must include with their licensure applicationsnew text end :

(1) an executed criminal history consent form, including fingerprints; and

(2) a money order or cashier's check payable to the Bureau of Criminal Apprehension for the fee for conducting the criminal history background check.

(b) The superintendent of the Bureau of Criminal Apprehension shall perform the background check required under paragraph (a) by retrieving criminal history data as defined in section 13.87 and shall also conduct a search of the national criminal records repository. The superintendent is authorized to exchange fingerprints with the Federal Bureau of Investigation for purposes of the criminal history check. The superintendent shall recover the cost to the bureau of a background check through the fee charged to the applicant under paragraph (a).

(c) The Board of Teaching or the commissioner of education may issue a license pending completion of a background check under this subdivision, but must notify the individual that the individual's license may be revoked based on the result of the background check.

Sec. 4.

Minnesota Statutes 2015 Supplement, section 122A.23, is amended to read:

122A.23 APPLICANTS TRAINED IN OTHER STATES.

Subdivision 1.

Preparation equivalency.

When a license to teach is authorized to be issued to any holder of a diploma or a degree of a Minnesota state university, or of the University of Minnesota, or of a liberal arts university, or a technical training institution, such license may also, in the discretion of the Board of Teaching deleted text begin or the commissioner of education, whichever has jurisdictiondeleted text end , be issued to any holder of a diploma or a degree of a teacher training institution of equivalent rank and standing of any other state. The diploma or degree must be granted by virtue of completing coursework in teacher preparation as preliminary to the granting of a diploma or a degree of the same rank and class. For purposes of granting a Minnesota teaching license to a person who receives a diploma or degree from a state-accredited, out-of-state teacher training program leading to licensure, the Board of Teaching must establish criteria and streamlinednew text begin policies andnew text end procedures by January 1, 2016, to recognize the experience and professional credentials of the person holding the out-of-state diploma or degree and allow that person to demonstrate to the board the person's qualifications for receiving a Minnesota teaching license based on performance measures the board adopts by January 1, 2016, under this section.

Subd. 2.

Applicants licensed in other states.

(a) Subject to the requirements of sections 122A.18, subdivision 8, and 123B.03, the Board of Teaching must issue a new text begin professional five-year new text end teaching license or deleted text begin a temporarydeleted text end new text begin an initial professional one-year new text end teaching license under paragraphs (c) to (f) to an applicant who holds at least a baccalaureate degree from a regionally accredited college or university and holds or held an out-of-state teaching license that requires the applicant to successfully complete a teacher preparation program approved by the issuing state, which includes either (1) field-specific teaching methods, student teaching, or equivalent experience, or (2) at least two years of teaching experience as the teacher of record in a similar licensure deleted text begin fielddeleted text end new text begin areanew text end .

(b) The Board of Teaching may issue a deleted text begin standarddeleted text end new text begin professional five-year teaching new text end license on the basis of teaching experience and examination requirements only.

(c) The Board of Teaching must issue a new text begin professional five-year new text end teaching license to an applicant who:

(1) successfully completed all exams and human relations preparation components required by the Board of Teaching; and

(2) holds or held an out-of-state teaching license to teach a similar content field and grade levels if the scope of the out-of-state license is no more than two grade levels less than a similar Minnesota license, and either (i) has completed field-specific teaching methods, student teaching, or equivalent experience, or (ii) has at least two years of teaching experience as the teacher of record in a similar licensure deleted text begin fielddeleted text end new text begin areanew text end .

(d) The Board of Teaching, consistent with board rules and paragraph (i), must issue up to four deleted text begin one-year temporarydeleted text end new text begin initial professional one-yearnew text end teaching licenses to an applicant who holds or held an out-of-state teaching license to teach a similar deleted text begin content field deleted text end new text begin licensure areanew text end and grade levels, where the scope of the out-of-state license is no more than two grade levels less than a similar Minnesota license, but has not successfully completed all exams and human relations preparation components required by the Board of Teaching.new text begin The board must issue a professional five-year teaching license to an applicant who successfully completes the requirements under this paragraph.new text end

(e) The Board of Teaching, consistent with board rules, must issue up to four new text begin initial professional new text end one-year deleted text begin temporarydeleted text end teaching licenses to an applicant who:

(1) successfully completed all exams and human relations preparation components required by the Board of Teaching; and

(2) holds or held an out-of-state teaching license to teach a similar deleted text begin content field deleted text end new text begin licensure areanew text end and grade levels, where the scope of the out-of-state license is no more than two grade levels less than a similar Minnesota license, but has not completed field-specific teaching methods or student teaching or equivalent experience.

The applicant may complete field-specific teaching methods deleted text begin and student teaching or equivalent experiencedeleted text end by successfully participating in a one-year school district mentorship program consistent with board-adopted standards of effective practice and Minnesota graduation requirements.new text begin If no school district mentorship program is available, the applicant must complete field-specific teaching methods coursework while serving as a teacher of record and providing classroom instruction in the applicant's field of licensure. The board must issue a professional five-year teaching license to an applicant who successfully completes the requirements under this paragraph.new text end

deleted text begin (f) The Board of Teaching must issue a restricted teaching license for only in the content field or grade levels specified in the out-of-state license to an applicant who: deleted text end

deleted text begin (1) successfully completed all exams and human relations preparation components required by the Board of Teaching; and deleted text end

deleted text begin (2) holds or held an out-of-state teaching license where the out-of-state license is more limited in the content field or grade levels than a similar Minnesota license. deleted text end

new text begin (f) The Board of Teaching must issue to an applicant with an out-of-state teaching license up to four initial professional one-year teaching licenses that are restricted in content or grade levels specified in the out-of-state license if the applicant's out-of-state teaching license is more limited than a similar Minnesota license in content field or grade levels. The Board of Teaching must issue a professional five-year teaching license to an applicant who successfully completes all exams and human relations preparation components required by the Board of Teaching. Any content or grade level restriction placed on a license under this paragraph remains in effect. new text end

(g) The Board of Teaching may issue a two-year deleted text begin limiteddeleted text end provisional deleted text begin license deleted text end new text begin permissionnew text end to an applicant under this subdivision to teach in a shortage area, consistent with section 122A.18, subdivision 4a.

(h) The Board of Teaching may issue a license under this subdivision if the applicant has attained the additional degrees, credentials, or licenses required in a particular licensure field and the applicant can demonstrate competency by obtaining qualifying scores on the board-adopted skills examination in reading, writing, and mathematics, and on applicable board-adopted rigorous content area and pedagogy examinations under section 122A.09, subdivision 4, paragraphs (a) and (e).

(i) The Board of Teaching must require an applicant for anew text begin professional five-year new text end teaching license or deleted text begin a temporarydeleted text end new text begin an initial professional one-yearnew text end teaching license under this subdivision to pass a board-adopted skills examination in reading, writing, and mathematics before the board issues the license unless, notwithstanding other provisions of this subdivision, an applicable board-approved National Association of State Directors of Teacher Education and Certification interstate deleted text begin reciprocitydeleted text end agreement exists to allow fully certified teachers from other states to transfer their certification to Minnesota.

Subd. 3.

Teacher licensure agreements with adjoining states.

(a) Notwithstanding any other law to the contrary, the Board of Teaching must enter into a National Association of State Directors of Teacher Education and Certification (NASDTEC) interstate agreement and other interstate agreements for teacher licensure to allow fully certified teachers from adjoining states to transfer their certification to Minnesota. The board must enter into these interstate agreements only after determining that the rigor of the teacher licensure or certification requirements in the adjoining state is commensurate with the rigor of Minnesota's teacher licensure requirements. The board may limit an interstate agreement to particular content fields or grade levels based on established priorities or identified shortages. This subdivision does not apply to out-of-state applicants holding only a provisional teaching license.

(b) The Board of Teaching must work with designated authorities in adjoining states to establish interstate teacher licensure agreements under this section.

Sec. 5.

Minnesota Statutes 2014, section 122A.245, as amended by Laws 2015, First Special Session chapter 3, article 2, sections 19 to 21, is amended to read:

122A.245 ALTERNATIVE TEACHER PREPARATION PROGRAM AND deleted text begin LIMITED-TERMdeleted text end new text begin PRELIMINARYnew text end TEACHER LICENSE.

Subdivision 1.

Requirements.

(a) To improve academic excellence, improve ethnic and cultural diversity in the classroom, and close the academic achievement gap, the Board of Teaching must approve qualified teacher preparation programs under this section that are a means to acquire a two-year deleted text begin limited-termdeleted text end new text begin preliminary teachernew text end license, which the board may renew one time for an additional one-year term, and to prepare for acquiring a deleted text begin standarddeleted text end new text begin professional five-yearnew text end license. The following entities are eligible to participate under this section:

(1) a school district, charter school, or nonprofit corporation organized under chapter 317A for an education-related purpose that forms a partnership with a college or university that has a board-approved alternative teacher preparation program; or

(2) a school district or charter school, after consulting with a college or university with a board-approved teacher preparation program, that forms a partnership with a nonprofit corporation organized under chapter 317A for an education-related purpose that has a board-approved teacher preparation program.

(b) Before becoming a teacher of record, a candidate must:

(1) have a bachelor's degree with a 3.0 or higher grade point average unless the board waives the grade point average requirement based on board-adopted criteria adopted by January 1, 2016;

(2) demonstrate a passing score on a board-adopted reading, writing, and mathematics skills examination under section 122A.09, subdivision 4, paragraph (b); and

(3) obtain qualifying scores on applicable board-approved rigorous content area and pedagogy examinations under section 122A.09, subdivision 4, paragraph (e).

(c) The Board of Teaching must issue a two-year deleted text begin limited-termdeleted text end new text begin preliminary teachernew text end license to a person who enrolls in an alternative teacher preparation program.

Subd. 2.

Characteristics.

An alternative teacher preparation program under this section must include:

(1) a minimum 200-hour instructional phase that provides intensive preparation and student teaching before the teacher candidate assumes classroom responsibilities;

(2) a research-based and results-oriented approach focused on best teaching practices to increase student proficiency and growth measured against state academic standards;

(3) strategies to combine pedagogy and best teaching practices to better inform teacher candidates' classroom instruction;

(4) assessment, supervision, and evaluation of teacher candidates to determine their specific needs throughout the program and to support their efforts to successfully complete the program;

(5) intensive, ongoing, and multiyear professional learning opportunities that accelerate teacher candidates' professional growth, support student learning, and provide a workplace orientation, professional staff development, and mentoring and peer review focused on standards of professional practice and continuous professional growth; and

(6) a requirement that teacher candidates demonstrate to the local site team under subdivision 5 satisfactory progress toward acquiring deleted text begin a standard licensedeleted text end new text begin professional five-year teaching licensesnew text end from the Board of Teaching.

Subd. 3.

Program approval; disapproval.

(a) The Board of Teaching must approve alternative teacher preparation programs under this section based on board-adopted criteria that reflect best practices for alternative teacher preparation programs, consistent with this section.

(b) The board must permit teacher candidates to demonstrate mastery of pedagogy and content standards in school-based settings and through other nontraditional means. "Nontraditional means" must include a portfolio of previous experiences, teaching experience, educator evaluations, certifications marking the completion of education training programs, and essentially equivalent demonstrations.

(c) The board must use nontraditional criteria to determine the qualifications of program instructors.

(d) The board may permit instructors to hold a baccalaureate degree only.

(e) If the Board of Teaching determines that a teacher preparation program under this section does not meet the requirements of this section, it may revoke its approval of the program after it notifies the program provider of any deficiencies and gives the program provider an opportunity to remedy the deficiencies.

Subd. 4.

Employment conditions.

Where applicable, teacher candidates with deleted text begin a limited-termdeleted text end new text begin a preliminary teachernew text end license under this section are members of the local employee organization representing teachers and subject to the terms of the local collective bargaining agreement between the exclusive representative of the teachers and the school board. A collective bargaining agreement between a school board and the exclusive representative of the teachers must not prevent or restrict or otherwise interfere with a school district's ability to employ a teacher prepared under this section.

Subd. 5.

Approval for deleted text begin standarddeleted text end new text begin professional five-yearnew text end license.

A school board or its designee must appoint members to a local site team that includes teachers, school administrators, and postsecondary faculty under subdivision 1, paragraph (a), clause (1), or staff of a participating nonprofit corporation under subdivision 1, paragraph (a), clause (2), to evaluate the performance of the teacher candidate. The evaluation must be consistent with board-adopted performance measures, use the Minnesota state standards of effective practice and subject matter content standards for teachers established in Minnesota Rules, and include a report to the board recommending whether or not to issue the teacher candidate a deleted text begin standarddeleted text end new text begin professional five-year teachingnew text end license.

Subd. 6.

Applicants trained in other states.

A person who successfully completes another state's alternative teacher preparation program, consistent with section 122A.23, deleted text begin subdivision 1,deleted text end may apply to the Board of Teaching for deleted text begin a standarddeleted text end new text begin an initial professional one-year teachingnew text end license deleted text begin under subdivision 7deleted text end new text begin or a professional five-year teaching licensenew text end .

Subd. 7.

deleted text begin Standarddeleted text end new text begin Professional five-yearnew text end license.

The Board of Teaching must issue a deleted text begin standarddeleted text end new text begin professional five-year teachingnew text end license to an otherwise qualified teacher candidate under this section who successfully performs throughout a program under this section, obtains qualifying scores on applicable board-adopted rigorous skills, pedagogy, and content area examinations under section 122A.09, subdivision 4, paragraphs (a) and (e), and is recommended for licensure under subdivision 5 or successfully demonstrates to the board qualifications for licensure under subdivision 6.

Subd. 8.

deleted text begin Highlydeleted text end Qualified teacher.

A person holding a valid limited-term license under this section is a deleted text begin highlydeleted text end qualified teacher and the teacher of record under section 122A.16.

Subd. 9.

Exchange of best practices.

By July 31 in an even-numbered year, deleted text begin a program participant anddeleted text end new text begin approved alternative preparation program providers,new text end the Minnesota State Colleges and Universities, the University of Minnesota, the Minnesota Private College Council, and the Department of Education must exchange information about best practices and educational innovations.

Subd. 10.

Reports.

The Board of Teaching must submit an interim report on the efficacy of this program to the policy and finance committees of the legislature with jurisdiction over kindergarten through grade 12 education by February 15, 2013, and a final report by February 15, 2015.

Sec. 6.

Minnesota Statutes 2015 Supplement, section 122A.40, subdivision 8, is amended to read:

Subd. 8.

Development, evaluation, and peer coaching for continuing contract teachers.

(a) To improve student learning and success, a school board and an exclusive representative of the teachers in the district, consistent with paragraph (b), may develop a teacher evaluation and peer review process for probationary and continuing contract teachers through joint agreement. If a school board and the exclusive representative of the teachers do not agree to an annual teacher evaluation and peer review process, then the school board and the exclusive representative of the teachers must implement the state teacher evaluation plan under paragraph (c). The process must include having trained observers serve as peer coaches or having teachers participate in professional learning communities, consistent with paragraph (b).

(b) To develop, improve, and support qualified teachers and effective teaching practices deleted text begin anddeleted text end new text begin ,new text end improve student learning and success, new text begin and provide all enrolled students in a district or school with improved and equitable access to more effective and diverse teachers, new text end the annual evaluation process for teachers:

(1) must, for probationary teachers, provide for all evaluations required under subdivision 5;

(2) must establish a three-year professional review cycle for each teacher that includes an individual growth and development plan, a peer review process, and at least one summative evaluation performed by a qualified and trained evaluator such as a school administrator. For the years when a tenured teacher is not evaluated by a qualified and trained evaluator, the teacher must be evaluated by a peer review;

(3) must be based on professional teaching standards established in rule;

(4) must coordinate staff development activities under sections 122A.60 and 122A.61 with this evaluation process and teachers' evaluation outcomes;

(5) may provide time during the school day and school year for peer coaching and teacher collaboration;

(6) may include job-embedded learning opportunities such as professional learning communities;

(7) may include mentoring and induction programsnew text begin for teachers, including teachers who are members of populations underrepresented among the licensed teachers in the district or school and who reflect the diversity of students under section 120B.35, subdivision 3, paragraph (b), clause (2), who are enrolled in the district or schoolnew text end ;

(8) must include an option for teachers to develop and present a portfolio demonstrating evidence of reflection and professional growth, consistent with section 122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment based on student work samples and examples of teachers' work, which may include video among other activities for the summative evaluation;

(9) must use data from valid and reliable assessments aligned to state and local academic standards and must use state and local measures of student growth and literacy that may include value-added models or student learning goals to determine 35 percent of teacher evaluation results;

(10) must use longitudinal data on student engagement and connection, and other student outcome measures explicitly aligned with the elements of curriculum for which teachers are responsible, including academic literacy, oral academic language, and achievement of content areas of English learners;

(11) must require qualified and trained evaluators such as school administrators to perform summative evaluations and ensure school districts and charter schools provide for effective evaluator training specific to teacher development and evaluation;

(12) must give teachers not meeting professional teaching standards under clauses (3) through (11) support to improve through a teacher improvement process that includes established goals and timelines; and

(13) must discipline a teacher for not making adequate progress in the teacher improvement process under clause (12) that may include a last chance warning, termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or other discipline a school administrator determines is appropriate.

Data on individual teachers generated under this subdivision are personnel data under section 13.43. The observation and interview notes of peer coaches may only be disclosed to other school officials with the consent of the teacher being coached.

(c) The department, in consultation with parents who may represent parent organizations and teacher and administrator representatives appointed by their respective organizations, representing the Board of Teaching, the Minnesota Association of School Administrators, the Minnesota School Boards Association, the Minnesota Elementary and Secondary Principals Associations, Education Minnesota, and representatives of the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota Chamber of Commerce, and Minnesota postsecondary institutions with research expertise in teacher evaluation, must create and publish a teacher evaluation process that complies with the requirements in paragraph (b) and applies to all teachers under this section and section 122A.41 for whom no agreement exists under paragraph (a) for an annual teacher evaluation and peer review process. The teacher evaluation process created under this subdivision does not create additional due process rights for probationary teachers under subdivision 5.

(d) Consistent with the measures of teacher effectiveness under this subdivision:

(1) for students in kindergarten through grade 4, a school administrator must not place or approve the placement of a student in the classroom of a teacher who is in the improvement process referenced in paragraph (b), clause (12), or has not had a summative evaluation if, in the prior year, that student was in the classroom of a teacher who received discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school teaches that grade; and

(2) for students in grades 5 through 12, a school administrator must not place or approve the placement of a student in the classroom of a teacher who is in the improvement process referenced in paragraph (b), clause (12), or has not had a summative evaluation if, in the prior year, that student was in the classroom of a teacher who received discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school teaches that subject area and grade.

All data created and used under this paragraph retains its classification under chapter 13.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 7.

Minnesota Statutes 2015 Supplement, section 122A.41, subdivision 5, is amended to read:

Subd. 5.

Development, evaluation, and peer coaching for continuing contract teachers.

(a) To improve student learning and success, a school board and an exclusive representative of the teachers in the district, consistent with paragraph (b), may develop an annual teacher evaluation and peer review process for probationary and nonprobationary teachers through joint agreement. If a school board and the exclusive representative of the teachers in the district do not agree to an annual teacher evaluation and peer review process, then the school board and the exclusive representative of the teachers must implement the state teacher evaluation plan developed under paragraph (c). The process must include having trained observers serve as peer coaches or having teachers participate in professional learning communities, consistent with paragraph (b).

(b) To develop, improve, and support qualified teachers and effective teaching practices and improve student learning and success, new text begin and provide all enrolled students in a district or school with improved and equitable access to more effective and diverse teachers, new text end the annual evaluation process for teachers:

(1) must, for probationary teachers, provide for all evaluations required under subdivision 2;

(2) must establish a three-year professional review cycle for each teacher that includes an individual growth and development plan, a peer review process, and at least one summative evaluation performed by a qualified and trained evaluator such as a school administrator;

(3) must be based on professional teaching standards established in rule;

(4) must coordinate staff development activities under sections 122A.60 and 122A.61 with this evaluation process and teachers' evaluation outcomes;

(5) may provide time during the school day and school year for peer coaching and teacher collaboration;

(6) may include job-embedded learning opportunities such as professional learning communities;

(7) may include mentoring and induction programsnew text begin for teachers, including teachers who are members of populations underrepresented among the licensed teachers in the district or school and who reflect the diversity of students under section 120B.35, subdivision 3, paragraph (b), clause (2), who are enrolled in the district or schoolnew text end ;

(8) must include an option for teachers to develop and present a portfolio demonstrating evidence of reflection and professional growth, consistent with section 122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment based on student work samples and examples of teachers' work, which may include video among other activities for the summative evaluation;

(9) must use data from valid and reliable assessments aligned to state and local academic standards and must use state and local measures of student growth and literacy that may include value-added models or student learning goals to determine 35 percent of teacher evaluation results;

(10) must use longitudinal data on student engagement and connection and other student outcome measures explicitly aligned with the elements of curriculum for which teachers are responsible, including academic literacy, oral academic language, and achievement of English learners;

(11) must require qualified and trained evaluators such as school administrators to perform summative evaluations and ensure school districts and charter schools provide for effective evaluator training specific to teacher development and evaluation;

(12) must give teachers not meeting professional teaching standards under clauses (3) through (11) support to improve through a teacher improvement process that includes established goals and timelines; and

(13) must discipline a teacher for not making adequate progress in the teacher improvement process under clause (12) that may include a last chance warning, termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or other discipline a school administrator determines is appropriate.

Data on individual teachers generated under this subdivision are personnel data under section 13.43. The observation and interview notes of peer coaches may only be disclosed to other school officials with the consent of the teacher being coached.

(c) The department, in consultation with parents who may represent parent organizations and teacher and administrator representatives appointed by their respective organizations, representing the Board of Teaching, the Minnesota Association of School Administrators, the Minnesota School Boards Association, the Minnesota Elementary and Secondary Principals Associations, Education Minnesota, and representatives of the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota Chamber of Commerce, and Minnesota postsecondary institutions with research expertise in teacher evaluation, must create and publish a teacher evaluation process that complies with the requirements in paragraph (b) and applies to all teachers under this section and section 122A.40 for whom no agreement exists under paragraph (a) for an annual teacher evaluation and peer review process. The teacher evaluation process created under this subdivision does not create additional due process rights for probationary teachers under subdivision 2.

(d) Consistent with the measures of teacher effectiveness under this subdivision:

(1) for students in kindergarten through grade 4, a school administrator must not place or approve the placement of a student in the classroom of a teacher who is in the improvement process referenced in paragraph (b), clause (12), or has not had a summative evaluation if, in the prior year, that student was in the classroom of a teacher who received discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school teaches that grade; and

(2) for students in grades 5 through 12, a school administrator must not place or approve the placement of a student in the classroom of a teacher who is in the improvement process referenced in paragraph (b), clause (12), or has not had a summative evaluation if, in the prior year, that student was in the classroom of a teacher who received discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school teaches that subject area and grade.

All data created and used under this paragraph retains its classification under chapter 13.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 8.

Minnesota Statutes 2015 Supplement, section 122A.414, subdivision 1, is amended to read:

Subdivision 1.

Restructured pay system.

A restructured alternative teacher professional pay system is established under subdivision 2 to provide incentives to encourage teachers to improve their knowledge and instructional skills in order to improve student learning and for school districts, intermediate school districts, cooperative units, as defined in section 123A.24, subdivision 2, and charter schools to recruit and retain deleted text begin highlydeleted text end qualified teachers, encourage deleted text begin highlydeleted text end qualified teachers to undertake challenging assignments, and support teachers' roles in improving students' educational achievement.

Sec. 9.

Minnesota Statutes 2015 Supplement, section 122A.414, subdivision 2, is amended to read:

Subd. 2.

Alternative teacher professional pay system.

(a) To participate in this program, a school district, new text begin an new text end intermediate school districtnew text begin consistent with paragraph (d)new text end , new text begin a new text end school site, or new text begin a new text end charter school must have deleted text begin an educational improvement plan under section 122A.413deleted text end new text begin a world's best workforce plan under section 120B.11new text end and an alternative teacher professional pay system agreement under paragraph (b). A charter school participant also must comply with subdivision 2a.

(b) The alternative teacher professional pay system agreement must:

(1) describe how teachers can achieve career advancement and additional compensation;

(2) describe how the school district, intermediate school district, school site, or charter school will provide teachers with career advancement options that allow teachers to retain primary roles in student instruction and facilitate site-focused professional development that helps other teachers improve their skills;

(3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation paid before implementing the pay system from being reduced as a result of participating in this system, base at least 60 percent of any compensation increase on teacher performance using:

(i) schoolwide student achievement gains under section 120B.35 or locally selected standardized assessment outcomes, or both;

(ii) measures of student growth and literacy that may include value-added models or student learning goals, consistent with section 122A.40, subdivision 8, paragraph (b), clause (9), or 122A.41, subdivision 5, paragraph (b), clause (9), and other measures that include the academic literacy, oral academic language, and achievement of English learners under section 122A.40, subdivision 8, paragraph (b), clause (10), or 122A.41, subdivision 5, paragraph (b), clause (10); and

(iii) an objective evaluation program under section 122A.40, subdivision 8, paragraph (b), clause (2), or 122A.41, subdivision 5, paragraph (b), clause (2);

(4) provide for participation in job-embedded learning opportunities such as professional learning communities to improve instructional skills and learning that are aligned with student needs under section deleted text begin 122A.413deleted text end new text begin 120B.11new text end , consistent with the staff development plan under section 122A.60 and led during the school day by trained teacher leaders such as master or mentor teachers;

(5) allow any teacher in a participating school district, intermediate school district, school site, or charter school that implements an alternative pay system to participate in that system without any quota or other limit; and

(6) encourage collaboration rather than competition among teachers.

(c) The alternative teacher professional pay system may:

(1) include a hiring bonus or other added compensation for teachers who are identified as effective or highly effective under the local teacher professional review cycle and work in a hard-to-fill position or in a hard-to-staff school such as a school with a majority of students whose families meet federal poverty guidelines, a geographically isolated school, or a school identified by the state as eligible for targeted programs or services for its students; and

(2) include incentives for teachers to obtain a master's degree or other advanced certification in their content field of licensure, pursue the training or education necessary to obtain an additional licensure in shortage areas identified by the district or charter school, or help fund a "grow your own" new teacher initiative.

new text begin (d) An intermediate school district under this subdivision must demonstrate in a form and manner determined by the commissioner that it uses the aid it receives under this section for activities identified in the alternative teacher professional pay system agreement. new text end

Sec. 10.

Minnesota Statutes 2015 Supplement, section 122A.414, subdivision 2b, is amended to read:

Subd. 2b.

Approval process.

(a) Consistent with the requirements of this section and deleted text begin sections 122A.413 anddeleted text end new text begin sectionnew text end 122A.415, the department must prepare and transmit to interested school districts, intermediate school districts, cooperatives, school sites, and charter schools a standard form for applying to participate in the alternative teacher professional pay system. The commissioner annually must establish three dates as deadlines by which interested applicants must submit an application to the commissioner under this section. An interested school district, intermediate school district, cooperative, school site, or charter school must submit to the commissioner a completed application executed by the district superintendent and the exclusive bargaining representative of the teachers if the applicant is a school district, intermediate school district, or school site, or executed by the charter school board of directors if the applicant is a charter school or executed by the governing board if the applicant is a cooperative unit. The application must include the proposed alternative teacher professional pay system agreement under subdivision 2. The department must review a completed application within 30 days of the most recent application deadline and recommend to the commissioner whether to approve or disapprove the application. The commissioner must approve applications on a first-come, first-served basis. The applicant's alternative teacher professional pay system agreement must be legally binding on the applicant and the collective bargaining representative before the applicant receives alternative compensation revenue. The commissioner must approve or disapprove an application based on the requirements under subdivisions 2 and 2a.

(b) If the commissioner disapproves an application, the commissioner must give the applicant timely notice of the specific reasons in detail for disapproving the application. The applicant may revise and resubmit its application and related documents to the commissioner within 30 days of receiving notice of the commissioner's disapproval and the commissioner must approve or disapprove the revised application, consistent with this subdivision. Applications that are revised and then approved are considered submitted on the date the applicant initially submitted the application.

Sec. 11.

Minnesota Statutes 2015 Supplement, section 122A.414, subdivision 3, is amended to read:

Subd. 3.

Reportdeleted text begin ; continued fundingdeleted text end .

(a) Participating districts, intermediate school districts, cooperatives, school sites, and charter schools must report on the implementation and effectiveness of the alternative teacher professional pay system, particularly addressing each requirement under subdivision 2 and make annual recommendations by June 15 to their school boards. deleted text begin The school board, board of directors, or governing board shall transmit a copy of the report with a summary of the findings and recommendations of the district, intermediate school district, cooperative, school site, or charter school to the commissioner in the form and manner determined by the commissioner.deleted text end

(b) deleted text begin If the commissioner determines that a school district, intermediate school district, cooperative, school site, or charter school that receives alternative teacher compensation revenue is not complying with the requirements of this section, the commissioner may withhold funding from that participant. Before making the determination, the commissioner must notify the participant of any deficiencies and provide the participant an opportunity to comply.deleted text end new text begin A district must include the report required under paragraph (a) as part of the world's best workforce report under section 120B.11, subdivision 5.new text end

Sec. 12.

Minnesota Statutes 2014, section 122A.4144, is amended to read:

122A.4144 SUPPLEMENTAL AGREEMENTS; ALTERNATIVE TEACHER PAY.

Notwithstanding section 179A.20 or other law to the contrary, a school board and the exclusive representative of the teachers may agree to reopen a collective bargaining agreement for the purpose of entering into an alternative teacher professional pay system agreement under sections deleted text begin 122A.413,deleted text end 122A.414deleted text begin ,deleted text end and 122A.415. Negotiations for a contract reopened under this section must be limited to issues related to the alternative teacher professional pay system.

Sec. 13.

Minnesota Statutes 2015 Supplement, section 122A.415, subdivision 4, is amended to read:

Subd. 4.

Basic alternative teacher compensation aid.

(a) The basic alternative teacher compensation aid for a school with a plan approved under section 122A.414, subdivision 2b, equals 65 percent of the alternative teacher compensation revenue under subdivision 1. The basic alternative teacher compensation aid for a charter school with a plan approved under section 122A.414, subdivisions 2a and 2b, equals $260 times the number of pupils enrolled in the school on October 1 of the previous year, or on October 1 of the current year for a charter school in the first year of operation, times the ratio of the sum of the alternative teacher compensation aid and alternative teacher compensation levy for all participating school districts to the maximum alternative teacher compensation revenue for those districts under subdivision 1.

(b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative teacher compensation aid entitlement must not exceed new text begin $75,840,000 for fiscal year 2016 and new text end $88,118,000 for fiscal year 2017 and later. The commissioner must limit the amount of alternative teacher compensation aid approved under this section so as not to exceed these limitsnew text begin by not approving new participants or by prorating the aid among participating districts, intermediate school districts, school sites, and charter schools. The commissioner may also reallocate a portion of the allowable aid for the biennium from the second year to the first year to meet the needs of approved participantsnew text end . Basic alternative teacher compensation aid for an intermediate district or other cooperative unit equals $3,000 times the number of licensed teachers employed by the intermediate district or cooperative unit on October 1 of the previous school year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 14.

Minnesota Statutes 2014, section 122A.416, is amended to read:

122A.416 ALTERNATIVE TEACHER COMPENSATION REVENUE FOR PERPICH CENTER FOR ARTS EDUCATION AND MULTIDISTRICT INTEGRATION COLLABORATIVES.

Notwithstanding sections deleted text begin 122A.413,deleted text end 122A.414, 122A.415, and 126C.10, multidistrict integration collaboratives and the Perpich Center for Arts Education are eligible to receive alternative teacher compensation revenue as if they were intermediate school districts. To qualify for alternative teacher compensation revenue, a multidistrict integration collaborative or the Perpich Center for Arts Education must meet all of the requirements of sections deleted text begin 122A.413,deleted text end 122A.414deleted text begin ,deleted text end and 122A.415 that apply to intermediate school districts, must report its enrollment as of October 1 of each year to the department, and must annually report its expenditures for the alternative teacher professional pay system consistent with the uniform financial accounting and reporting standards to the department by November 30 of each year.

Sec. 15.

Minnesota Statutes 2014, section 122A.42, is amended to read:

122A.42 GENERAL CONTROL OF SCHOOLS.

new text begin (a) new text end The teacher new text begin of record new text end shall have the general control and government of the schoolnew text begin and classroomnew text end . When more than one teacher is employed in any district, one of the teachers may be designated by the board as principal and shall have the general control and supervision of the schools of the district, subject to the general supervisory control of the board and other officers.

new text begin (b) Consistent with paragraph (a), the teacher may remove students from class under section 121A.61, subdivision 2, for violent or disruptive conduct. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 16.

Minnesota Statutes 2015 Supplement, section 122A.60, subdivision 4, is amended to read:

Subd. 4.

Staff development report.

(a) deleted text begin By October 15 of each year,deleted text end The district and site staff development committees shall write deleted text begin and submitdeleted text end a report of staff development activities and expenditures for the previous yeardeleted text begin , in the form and manner determined by deleted text end deleted text begin the commissionerdeleted text end . The report, signed by the district superintendent and staff development chair, must include assessment and evaluation data indicating progress toward district and site staff development goals based on teaching and learning outcomes, including the percentage of teachers and other staff involved in instruction who participate in effective staff development activities under subdivision 3new text begin as part of the district's world's best workforce report under section 120B.11, subdivision 5new text end .

(b) The report must break down expenditures for:

(1) curriculum development and curriculum training programs; and

(2) staff development training models, workshops, and conferences, and the cost of releasing teachers or providing substitute teachers for staff development purposes.

The report also must indicate whether the expenditures were incurred at the district level or the school site level, and whether the school site expenditures were made possible by grants to school sites that demonstrate exemplary use of allocated staff development revenue. These expenditures must be reported using the uniform financial and accounting and reporting standards.

deleted text begin (c) The commissioner shall report the staff development progress and expenditure data to the house of representatives and senate committees having jurisdiction over education by February 15 each year. deleted text end

Sec. 17.

Minnesota Statutes 2014, section 122A.63, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

new text begin (a) new text end A grant program is established to assist American Indian people to become teachers and to provide additional education for American Indian teachers. The commissioner may award a joint grant to each of the following:

(1) the Duluth campus of the University of Minnesota and Independent School District No. 709, Duluth;

(2) Bemidji State University and Independent School District No. 38, Red Lake;

(3) Moorhead State University and one of the school districts located within the White Earth Reservation; and

(4) Augsburg College, Independent School District No. 625, St. Paul, and Special School District No. 1, Minneapolis.

new text begin (b) If additional funds are available, the commissioner may award additional joint grants to other postsecondary institutions and school districts. new text end

Sec. 18.

Minnesota Statutes 2014, section 122A.72, subdivision 5, is amended to read:

Subd. 5.

Center functions.

(a) A teacher center shall perform functions according to this subdivision. The center shall assist teachers, diagnose learning needs, experiment with the use of multiple instructional approaches, assess pupil outcomes, assess staff development needs and plans, and teach school personnel about effective pedagogical approaches. The center shall develop and produce curricula and curricular materials designed to meet the educational needs of pupils being served, by applying educational research and new and improved methods, practices, and techniques. The center shall provide programs to improve the skills of teachers to meet the special educational needs of pupils. The center shall provide programs to familiarize teachers with developments in curriculum formulation and educational research, including how research can be used to improve teaching skills. The center shall facilitate sharing of resources, ideas, methods, and approaches directly related to classroom instruction and improve teachers' familiarity with current teaching materials and products for use in their classrooms. The center shall provide in-service programs.

(b) Each teacher center must provide a professional development program to train interested and deleted text begin highlydeleted text end qualified elementary, middle, and secondary teachers, selected by the employing school district, to assist other teachers in that district with mathematics and science curriculum, standards, and instruction so that all teachers have access to:

(1) high quality professional development programs in mathematics and science that address curriculum, instructional methods, alignment of standards, and performance measurements, enhance teacher and student learning, and support state mathematics and science standards; and

(2) research-based mathematics and science programs and instructional models premised on best practices that inspire teachers and students and have practical classroom application.

Sec. 19.

Minnesota Statutes 2014, section 124D.861, as amended by Laws 2015, chapter 21, article 1, section 20, is amended to read:

124D.861 ACHIEVEMENT AND INTEGRATION FOR MINNESOTA.

Subdivision 1.

Program to close the academic achievement and opportunity gap; revenue uses.

(a) The "Achievement and Integration for Minnesota" program is established to pursue racial and economic integration and increase student academic achievement, create equitable educational opportunities, and reduce academic disparities based on students' diverse racial, ethnic, and economic backgrounds in Minnesota public schools.

(b) For purposes of this section and section 124D.862, "eligible district" means a district required to submit a plan to the commissioner under Minnesota Rules governing school desegregation and integration, or be a member of a multidistrict integration collaborative that files a plan with the commissioner.

(c) Eligible districts must use the revenue under section 124D.862 to pursue academic achievement and racial and economic integration through:

(1) integrated learning environments that new text begin give students improved and equitable access to effective and more diverse teachers, new text end prepare all students to be effective citizensnew text begin ,new text end and enhance social cohesion;

(2) policies and curricula and trained instructors, administrators, school counselors, and other advocates to support and enhance integrated learning environments under this section, including through magnet schools, innovative, research-based instruction, differentiated instruction, new text begin improved and equitable access to effective and diverse teachers, new text end and targeted interventions to improve achievement; and

(3) rigorous career and college readiness programs new text begin and effective and more diverse instructors new text end for underserved student populations, consistent with section 120B.30, subdivision 1; integrated learning environments to increase student academic achievement; cultural fluency, competency, and interaction; graduation and educational attainment rates; and parent involvement.

new text begin (d) Consistent with paragraph (c), eligible districts may adopt policies to increase the diversity of district teachers and administrators using the revenue under section 124D.862 for recruitment, retention, and hiring incentives or additional compensation. new text end

Subd. 2.

Plan implementation; components.

(a) The school board of each eligible district must formally develop and implement a long-term plan under this section. The plan must be incorporated into the district's comprehensive strategic plan under section 120B.11. Plan components may include: innovative and integrated prekindergarten through grade 12 learning environments that offer students school enrollment choices; family engagement initiatives that involve families in their students' academic life and success; professional development opportunities for teachers and administrators focused on improving the academic achievement of all studentsnew text begin , including teachers and administrators who are members of populations underrepresented among the licensed teachers or administrators in the district or school and who reflect the diversity of students under section 120B.35, subdivision 3, paragraph (b), clause (2), who are enrolled in the district or schoolnew text end ; increased programmatic opportunities new text begin and effective and more diverse instructors new text end focused on rigor and college and career readiness for underserved students, including students enrolled in alternative learning centers under section 123A.05, public alternative programs under section 126C.05, subdivision 15, and contract alternative programs under section 124D.69, among other underserved students; or recruitment and retention of teachers and administrators with diverse racial and ethnic backgrounds. The plan must contain goals for:

(1) reducing the disparities in academic achievement new text begin and in equitable access to effective and more diverse teachers new text end among all students and specific categories of students under section 120B.35, subdivision 3, paragraph (b), excluding the student categories of gender, disability, and English learners; and

(2) increasing racial and economic new text begin diversity and new text end integration in schools and districts.

(b) Among other requirements, an eligible district must implement effective, research-based interventions that include formative assessment practices to reduce the disparities in student academic performance among the specific categories of students as measured by student progress and growth on state reading and math assessments and as aligned with section 120B.11.

(c) Eligible districts must create efficiencies and eliminate duplicative programs and services under this section, which may include forming collaborations or a single, seven-county metropolitan areawide partnership of eligible districts for this purpose.

Subd. 3.

Public engagement; progress report and budget process.

(a) To receive revenue under section 124D.862, the school board of an eligible district must incorporate school and district plan components under section 120B.11 into the district's comprehensive integration plan.

(b) A school board must hold at least one formal annual hearing to publicly report its progress in realizing the goals identified in its plan. At the hearing, the board must provide the public with longitudinal data demonstrating district and school progress in reducing the disparities in student academic performance among the specified categories of studentsnew text begin , in improving students' equitable access to effective and more diverse teachers,new text end and in realizing racial and economic new text begin diversity and new text end integration, consistent with the district plan and the measures in paragraph (a). At least 30 days before the formal hearing under this paragraph, the board must post its plan, its preliminary analysis, relevant student performance data, and other longitudinal data on the district's Web site. A district must hold one hearing to meet the hearing requirements of both this section and section 120B.11.

(c) The district must submit a detailed budget to the commissioner by March 15 in the year before it implements its plan. The commissioner must review, and approve or disapprove the district's budget by June 1 of that year.

(d) The longitudinal data required under paragraph (b) must be based on student growth and progress in reading and mathematics, as defined under section 120B.30, subdivision 1, and student performance data and achievement reports from fully adaptive reading and mathematics assessments for grades 3 through 7 beginning in the 2015-2016 school year under section 120B.30, subdivision 1a, and either (i) school enrollment choices, (ii) the number of world language proficiency or high achievement certificates awarded under section 120B.022, subdivision 1a, or the number of state bilingual and multilingual seals issued under section 120B.022, subdivision 1b, or (iii) school safety and students' engagement and connection at school under section 120B.35, subdivision 3, paragraph (d). Additional longitudinal data may be based on: students' progress toward career and college readiness under section 120B.30, subdivision 1; or rigorous coursework completed under section 120B.35, subdivision 3, paragraph (c), clause (2).

Subd. 4.

Timeline and implementation.

A board must approve its plan and submit it to the department by March 15. If a district that is part of a multidistrict council applies for revenue for a plan, the individual district shall not receive revenue unless it ratifies the plan adopted by the multidistrict council. Each plan has a term of three years. For the 2014-2015 school year, an eligible district under this section must submit its plan to the commissioner for review by March 15, 2014. For the 2013-2014 school year only, an eligible district may continue to implement its current plan until the commissioner approves a new plan under this section.

Subd. 5.

Evaluation.

The commissioner must evaluate the efficacy of district plans in reducing the disparities in student academic performance among the specified categories of students within the district, new text begin improving students' equitable access to effective and diverse teachers, new text end and in realizing racial and economic new text begin diversity and new text end integration. The commissioner shall report evaluation results to the kindergarten through grade 12 education committees of the legislature by February 1 of every odd-numbered year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 20.

Minnesota Statutes 2015 Supplement, section 127A.05, subdivision 6, is amended to read:

Subd. 6.

Survey of districts.

The commissioner of education shall survey the state's school districts and teacher preparation programs and report to the education committees of the legislature by February 1 of each odd-numbered year on the status of teacher early retirement patterns,new text begin the access to effective and more diverse teachers who reflect the students under section 120B.35, subdivision 3, paragraph (b), clause (2), enrolled in a district or school,new text end the teacher shortage, and the substitute teacher shortage, including patterns and shortages in subject areas andnew text begin the economic developmentnew text end regions of the state. The report must also includenew text begin : aggregate data on teachers' self-reported race and ethnicity; data onnew text end how districts are making progress in hiring teachers and substitutes in the areas of shortagenew text begin ;new text end and a five-year projection of teacher demand for each districtnew text begin , taking into account the students under section 120B.35, subdivision 3, paragraph (b), clause (2), expected to enroll in the district during that five-year periodnew text end .

Sec. 21.

new text begin [136F.361] CAREER AND TECHNICAL EDUCATION CERTIFICATION AND LICENSURE. new text end

new text begin (a) The Board of Trustees of the Minnesota State Colleges and Universities System, consistent with section 122A.09, subdivision 10, paragraph (e), must provide an alternative preparation program allowing individuals to be certified as a career and technical education instructor able to teach career and technical education courses offered by a school district or charter school. The Board of Trustees may locate the first program in the seven county metropolitan area. new text end

new text begin (b) Consistent with paragraph (a), the Board of Trustees of the Minnesota State Colleges and Universities system, in consultation with the Board of Teaching, must develop the standards, pedagogy, and curriculum for an alternative preparation program to prepare qualified individuals: to attain certification as a career and technical education instructor under section 122A.09, subdivision 10, paragraph (e), during the 2016-2017 through 2018-2019 school years; and to attain either certification or licensure as a career and technical education instructor or teacher to teach career and technical education courses offered by a school district or charter school in the 2019-2020 school year and later. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 academic year and later. new text end

Sec. 22.

new text begin STAFF DEVELOPMENT GRANTS FOR INTERMEDIATE SCHOOL DISTRICTS AND OTHER COOPERATIVE UNITS. new text end

new text begin (a) For fiscal years 2017, 2018, and 2019 only, an intermediate school district or other cooperative unit providing instruction to students in federal instructional settings of level 4 or higher qualifies for staff development grants equal to $1,000 times the full-time equivalent number of licensed instructional staff and nonlicensed classroom aides employed by or assigned to the intermediate school district or other cooperative unit during the previous fiscal year. new text end

new text begin (b) Staff development grants received under this section must be used for activities related to enhancing services to students who may have challenging behaviors or mental health issues or be suffering from trauma. Specific qualifying staff development activities include but are not limited to: new text end

new text begin (1) proactive behavior management; new text end

new text begin (2) personal safety training; new text end

new text begin (3) de-escalation techniques; and new text end

new text begin (4) adaptation of published curriculum and pedagogy for students with complex learning and behavioral needs. new text end

new text begin (c) The grants received under this section must be reserved and spent only on the activities specified in this section. If funding for purposes of this section is insufficient, the commissioner must prorate the grants. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2017 and later. new text end

Sec. 23.

new text begin CAREER AND TECHNICAL EDUCATOR LICENSING ADVISORY TASK FORCE. new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin The Career and Technical Educator Licensing Advisory Task Force consists of the following members, appointed by the commissioner of education, unless otherwise specified: new text end

new text begin (1) one person who is a member of the Board of Teaching; new text end

new text begin (2) one person representing colleges and universities offering a board-approved teacher preparation program; new text end

new text begin (3) one person representing science, technology, engineering, and math programs, such as Project Lead the Way; new text end

new text begin (4) one person designated by the Board of the Minnesota Association for Career and Technical Administrators; new text end

new text begin (5) one person designated by the Board of the Minnesota Association for Career and Technical Education; new text end

new text begin (6) three people who are secondary school administrators, including superintendents, principals, and assistant principals; and new text end

new text begin (7) two people who are members of other interested groups, as determined by the commissioner of education. new text end

new text begin The commissioner and designating authorities must make their initial appointments and designations by July 1, 2016. The commissioner and designating authorities, to the extent practicable, should make appointments balanced as to gender and reflecting the ethnic diversity of the state population. new text end

new text begin Subd. 2. new text end

new text begin Duties; report. new text end

new text begin The task force must review the current status of career and technical educator licenses and provide recommendations on changes, if any are deemed necessary, to the licensure requirements and methods to increase access for school districts to licensed career and technical educators. The task force must report its findings and recommendations, with draft legislation if needed to implement the recommendations, to the chairs and ranking minority members of the legislative committees with jurisdiction over kindergarten through grade 12 education and higher education by January 15, 2017. new text end

new text begin Subd. 3. new text end

new text begin First meeting. new text end

new text begin The commissioner of education or the commissioner's designee must convene the first meeting of the task force by September 1, 2016. new text end

new text begin Subd. 4. new text end

new text begin Administrative support. new text end

new text begin The commissioner of education must provide meeting space and administrative services for the task force. new text end

new text begin Subd. 5. new text end

new text begin Chair. new text end

new text begin The commissioner of education or the commissioner's designee shall serve as chair of the task force. new text end

new text begin Subd. 6. new text end

new text begin Compensation. new text end

new text begin The public members of the task force serve without compensation or payment of expenses. new text end

new text begin Subd. 7. new text end

new text begin Expiration. new text end

new text begin The task force expires January 16, 2017, or upon submission of the report required in subdivision 2, whichever is earlier. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 24.

new text begin LEGISLATIVE STUDY GROUP ON EDUCATOR LICENSURE. new text end

new text begin (a) A 12-member legislative study group on teacher licensure is created to review the 2016 report prepared by the Office of the Legislative Auditor on the Minnesota teacher licensure program and submit a written report by February 1, 2017, to the legislature recommending how to restructure Minnesota's teacher licensure system by consolidating all teacher licensure activities into a single state entity to ensure transparency and consistency or, at a minimum, clarify existing teacher licensure responsibilities to provide transparency and consistency. In developing its recommendations, the study group must consider the tiered licensure system recommended in the legislative auditor's report, among other recommendations. The study group must identify and include in its report any statutory changes needed to implement the study group recommendations. new text end

new text begin (b) The legislative study group on educator licensure includes: new text end

new text begin (1) six duly elected and currently serving members of the house of representatives, three appointed by the speaker of the house and three appointed by the house minority leader, and one of whom must be the current chair of the house of representatives Education Innovation Policy Committee; and new text end

new text begin (2) six duly elected and currently serving senators, three appointed by the senate majority leader and three appointed by the senate minority leader, one of whom must be the current chair of the senate Education Committee. new text end

new text begin Only duly elected and currently serving members of the house of representatives or senate may be study group members. new text end

new text begin (c) The appointments must be made by June 1, 2016, and expire February 2, 2017. If a vacancy occurs, the leader of the caucus in the house of representatives or senate to which the vacating study group member belonged must fill the vacancy. The chair of the house Education Innovation Policy Committee shall convene the first meeting of the study group. The study group shall elect a chair or cochairs from among the members at the first meeting. The study group must meet periodically. The Legislative Coordinating Commission shall provide technical and administrative assistance upon request. new text end

new text begin (d) In reviewing the legislative auditor's report and developing its recommendations, the study group must consult with interested and affected stakeholders, including representatives of the Board of Teaching, Minnesota Department of Education, Education Minnesota, MinnCAN, Minnesota Business Partnership, Minnesota Rural Education Association, Association of Metropolitan School Districts, Minnesota Association of Colleges for Teacher Education, College of Education and Human Development at the University of Minnesota, Minnesota State Colleges and Universities, Minnesota Private College Council, Minnesota School Boards Association, Minnesota Elementary School Principals' Association, Minnesota Association of Secondary School Principals, Minnesota Association of School Administrators, the Board of School Administrators, Minnesota Indian Affairs Council, the Council on Asian Pacific Minnesotans, Council for Minnesotans of African Heritage, Minnesota Council on Latino Affairs, Minnesota Association of Educators, and Minnesota Teach For America, among other stakeholders. new text end

new text begin (e) The study group expires February 2, 2017, unless extended by law. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

ARTICLE 25

EDUCATION EXCELLENCE

Section 1.

new text begin [119A.035] SCHOOL CRISIS RESPONSE TEAMS. new text end

new text begin Subdivision 1. new text end

new text begin Commissioner's duties. new text end

new text begin To ensure timely responses to school crises, the commissioner must work in cooperation with the Minnesota School Safety Center to collect, maintain, and make available to schools contact information for crisis response teams throughout the state. new text end

new text begin Subd. 2. new text end

new text begin Crisis response teams. new text end

new text begin In regions of Minnesota where an existing crisis response team has not been formed by a school district, county, or city, the commissioner, in cooperation with the Minnesota School Safety Center, must convene a working group in each region to develop a plan to form a crisis response team for that region. Team members from the public and private sectors may represent various disciplines, including school administrators, guidance counselors, psychologists, social workers, teachers, nurses, security experts, media relations professionals, and other related areas. new text end

Sec. 2.

Minnesota Statutes 2014, section 120A.42, is amended to read:

120A.42 CONDUCT OF SCHOOL ON CERTAIN HOLIDAYS.

new text begin (a) new text end The governing body of any district may contract with any of the teachers of the district for the conduct of schools, and may conduct schools, on either, or any, of the following holidays, provided that a clause to this effect is inserted in the teacher's contract: Martin Luther King's birthday, Lincoln's and Washington's birthdays, Columbus Day and Veterans' Day. On Martin Luther King's birthday, Washington's birthday, Lincoln's birthday, and Veterans' Day at least one hour of the school program must be devoted to a patriotic observance of the day.

new text begin (b) A district may conduct a school program to honor Constitution Day and Citizenship Day by providing opportunities for students to learn about the principles of American democracy, the American system of government, American citizens' rights and responsibilities, American history, and American geography, symbols, and holidays. Among other activities under this paragraph, districts may administer to students the test questions United States Citizenship and Immigration Services officers pose to applicants for naturalization. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 3.

Minnesota Statutes 2014, section 120B.02, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Required knowledge and understanding of civics. new text end

new text begin (a) For purposes of this subdivision, "civics test questions" means 50 of the 100 questions that, as of January 1, 2015, United States citizenship and immigration services officers use to select the questions they pose to applicants for naturalization so the applicants can demonstrate their knowledge and understanding of the fundamentals of United States history and government, as required by United States Code, title 8, section 1423. The Learning Law and Democracy Foundation, in consultation with Minnesota civics teachers, must select by July 1 each year 50 of the 100 questions under this paragraph to serve as the state's civics test questions for the proximate school year and immediately transmit the 50 selected civics test questions to the department and to the Legislative Coordinating Commission, which must post the 50 questions it receives on the Minnesota's Legacy Web site by August 1 of that year. new text end

new text begin (b) A student enrolled in a public school must correctly answer at least 30 of the 50 civics test questions. A school or district may record on a student's transcript that the student answered at least 30 of 50 civics test questions correctly. A school or district may exempt a student with disabilities from this requirement if the student's individualized education program team determines the requirement is inappropriate and establishes an alternative requirement. A school or district may administer the civics test questions in a language other than English to students who qualify for English learner services. new text end

new text begin (c) Schools and districts may administer civics test questions as part of the social studies curriculum. A district must not prevent a student from graduating or deny a student a high school diploma for failing to correctly answer at least 30 of 50 civics test questions. new text end

new text begin (d) The commissioner and public schools and school districts must not charge students any fees related to this subdivision. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for students enrolling in grade 9 in the 2017-2018 school year or later. new text end

Sec. 4.

Minnesota Statutes 2014, section 120B.021, subdivision 1, is amended to read:

Subdivision 1.

Required academic standards.

(a) The following subject areas are required for statewide accountability:

(1) language arts;

(2) mathematics;

(3) science;

(4) social studies, including history, geography, economics, and government and citizenshipnew text begin that includes civics consistent with section 120B.02, subdivision 3new text end ;

(5) physical education;

(6) health, for which locally developed academic standards apply; and

(7) the arts, for which statewide or locally developed academic standards apply, as determined by the school district. Public elementary and middle schools must offer at least three and require at least two of the following four arts areas: dance; music; theater; and visual arts. Public high schools must offer at least three and require at least one of the following five arts areas: media arts; dance; music; theater; and visual arts.

(b) For purposes of applicable federal law, the academic standards for language arts, mathematics, and science apply to all public school students, except the very few students with extreme cognitive or physical impairments for whom an individualized education program team has determined that the required academic standards are inappropriate. An individualized education program team that makes this determination must establish alternative standards.

new text begin (c) Beginning in the 2016-2017 school year, the department must adopt the most recent National Association of Sport and Physical Education kindergarten through grade 12 standards and benchmarks for physical education as the required physical education academic standards. The department may modify and adapt the national standards to accommodate state interest. The modification and adaptations must maintain the purpose and integrity of the national standards. The department must make available sample assessments, which school districts may use as an alternative to local assessments, to assess students' mastery of the physical education standards beginning in the 2018-2019 school year. new text end

deleted text begin (c)deleted text end new text begin (d) new text end District efforts to develop, implement, or improve instruction or curriculum as a result of the provisions of this section must be consistent with sections 120B.10, 120B.11, and 120B.20.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016, except that the change in paragraph (a) is effective for students enrolling in grade 9 in the 2017-2018 school year and later. new text end

Sec. 5.

Minnesota Statutes 2014, section 120B.021, subdivision 3, is amended to read:

Subd. 3.

Rulemaking.

The commissioner, consistent with the requirements of this section and section 120B.022, must adopt statewide rules under section 14.389 for implementing statewide rigorous core academic standards in language arts, mathematics, science, social studies, new text begin physical education,new text end and the arts. After the rules authorized under this subdivision are initially adopted, the commissioner may not amend or repeal these rules nor adopt new rules on the same topic without specific legislative authorization. The academic standards for language arts, mathematics, and the arts must be implemented for all students beginning in the 2003-2004 school year. The academic standards for science and social studies must be implemented for all students beginning in the 2005-2006 school year.

Sec. 6.

Minnesota Statutes 2015 Supplement, section 120B.021, subdivision 4, is amended to read:

Subd. 4.

Revisions and reviews required.

(a) The commissioner of education must revise and appropriately embed technology and information literacy standards consistent with recommendations from school media specialists into the state's academic standards and graduation requirements and implement a ten-year cycle to review and, consistent with the review, revise state academic standards and related benchmarks, consistent with this subdivision. During each ten-year review and revision cycle, the commissioner also must examine the alignment of each required academic standard and related benchmark with the knowledge and skills students need for career and college readiness and advanced work in the particular subject area. The commissioner must include the contributions of Minnesota American Indian tribes and communities as related to the academic standards during the review and revision of the required academic standards.

(b) The commissioner must ensure that the statewide mathematics assessments administered to students in grades 3 through 8 and 11 are aligned with the state academic standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph (b). The commissioner must implement a review of the academic standards and related benchmarks in mathematics beginning in the deleted text begin 2020-2021deleted text end new text begin 2021-2022new text end school year and every ten years thereafter.

(c) The commissioner must implement a review of the academic standards and related benchmarks in arts beginning in the deleted text begin 2016-2017deleted text end new text begin 2017-2018new text end school year and every ten years thereafter.

(d) The commissioner must implement a review of the academic standards and related benchmarks in science beginning in the deleted text begin 2017-2018deleted text end new text begin 2018-2019new text end school year and every ten years thereafter.

(e) The commissioner must implement a review of the academic standards and related benchmarks in language arts beginning in the deleted text begin 2018-2019deleted text end new text begin 2019-2020new text end school year and every ten years thereafter.

(f) The commissioner must implement a review of the academic standards and related benchmarks in social studies beginning in the deleted text begin 2019-2020deleted text end new text begin 2020-2021new text end school year and every ten years thereafter.

(g) new text begin The commissioner must implement a review of the academic standards and related benchmarks in physical education beginning in the 2022-2023 school year and every ten years thereafter.new text end

new text begin (h) new text end School districts and charter schools must revise and align local academic standards and high school graduation requirements in health, world languages, and career and technical education to require students to complete the revised standards beginning in a school year determined by the school district or charter school. School districts and charter schools must formally establish a periodic review cycle for the academic standards and related benchmarks in health, world languages, and career and technical education.

Sec. 7.

new text begin [120B.026] PHYSICAL EDUCATION; EXCLUSION FROM CLASS; RECESS. new text end

new text begin A student may be excused from a physical education class if the student submits written information signed by a physician stating that physical activity will jeopardize the student's health. A student may be excused from a physical education class if being excused meets the child's unique and individualized needs according to the child's individualized education program, federal 504 plan, or individualized health plan. A student may be excused if a parent or guardian requests an exemption on religious grounds. A student with a disability must be provided with modifications or adaptations that allow physical education class to meet their needs. Schools are strongly encouraged not to exclude students in kindergarten through grade 5 from recess due to punishment or disciplinary action. new text end

Sec. 8.

Minnesota Statutes 2014, section 120B.11, subdivision 1a, is amended to read:

Subd. 1a.

Performance measures.

Measures to determine school district and school site progress in striving to create the world's best workforce must include at least:

deleted text begin (1) student performance on the National Assessment of Education Progress where applicable; deleted text end

deleted text begin (2)deleted text end new text begin (1) new text end the size of the academic achievement gap, rigorous course taking under section 120B.35, subdivision 3, paragraph (c), clause (2), and enrichment experiences by student subgroup;

deleted text begin (3)deleted text end new text begin (2)new text end student performance on the Minnesota Comprehensive Assessments;

deleted text begin (4)deleted text end new text begin (3)new text end high school graduation rates; and

deleted text begin (5)deleted text end new text begin (4)new text end career and college readiness under section 120B.30, subdivision 1.

Sec. 9.

Minnesota Statutes 2014, section 120B.11, subdivision 2, is amended to read:

Subd. 2.

Adopting plans and budgets.

A school board, at a public meeting, shall adopt a comprehensive, long-term strategic plan to support and improve teaching and learning that is aligned with creating the world's best workforce and includes:

(1) clearly defined district and school site goals and benchmarks for instruction and student achievement for all student subgroups identified in section 120B.35, subdivision 3, paragraph (b), clause (2);

(2) a process deleted text begin for assessing and evaluatingdeleted text end new text begin to assess and evaluatenew text end each student's progress toward meeting state and local academic standardsnew text begin , assess and identify students to participate in gifted and talented programs and accelerate their instruction, and adopt early-admission procedures consistent with section 120B.15,new text end and identifying the strengths and weaknesses of instruction in pursuit of student and school success and curriculum affecting students' progress and growth toward career and college readiness and leading to the world's best workforce;

(3) a system to periodically review and evaluate the effectiveness of all instruction and curriculum, taking into account strategies and best practices, student outcomes, school principal evaluations under section 123B.147, subdivision 3, new text begin students' access to effective teachers who are members of populations underrepresented among the licensed teachers in the district or school and who reflect the diversity of enrolled students under section 120B.35, subdivision 3, paragraph (b), clause (2),new text end and teacher evaluations under section 122A.40, subdivision 8, or 122A.41, subdivision 5;

(4) strategies for improving instruction, curriculum, and student achievement, including the English and, where practicable, the native language development and the academic achievement of English learners;

new text begin (5) a process to examine the equitable distribution of teachers and strategies to ensure low-income and minority children are not taught at higher rates than other children by inexperienced, ineffective, or out-of-field teachers; new text end

deleted text begin (5)deleted text end new text begin (6)new text end education effectiveness practices that integrate high-quality instruction, rigorous curriculum, technology, and a collaborative professional culture that develops and supports teacher quality, performance, and effectiveness; and

deleted text begin (6)deleted text end new text begin (7)new text end an annual budget for continuing to implement the district plan.

Sec. 10.

Minnesota Statutes 2014, section 120B.11, subdivision 3, is amended to read:

Subd. 3.

District advisory committee.

Each school board shall establish an advisory committee to ensure active community participation in all phases of planning and improving the instruction and curriculum affecting state and district academic standards, consistent with subdivision 2. A district advisory committee, to the extent possible, shall reflect the diversity of the district and its school sites, include teachers, parents, support staff, students, and other community residents, and provide translation to the extent appropriate and practicable. The district advisory committee shall pursue community support to accelerate the academic and native literacy and achievement of English learners with varied needs, from young children to adults, consistent with section 124D.59, subdivisions 2 and 2a. The district may establish site teams as subcommittees of the district advisory committee under subdivision 4. The district advisory committee shall recommend to the school board rigorous academic standards, student achievement goals and measures consistent with subdivision 1a and sections 120B.022, subdivisions 1a and 1b, and 120B.35, district assessments, new text begin means to improve students' equitable access to effective and more diverse teachers, new text end and program evaluations. School sites may expand upon district evaluations of instruction, curriculum, assessments, or programs. Whenever possible, parents and other community residents shall comprise at least two-thirds of advisory committee members.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 11.

Minnesota Statutes 2014, section 120B.11, subdivision 4, is amended to read:

Subd. 4.

Site team.

A school deleted text begin maydeleted text end new text begin mustnew text end establish a site team to develop and implement strategies and education effectiveness practices to improve instruction, curriculum, cultural competencies, including cultural awareness and cross-cultural communication, and student achievement at the school site, consistent with subdivision 2.new text begin The site team must include an equal number of teachers and administrators and at least one parent.new text end The new text begin site new text end team advises the board and the advisory committee about developing the annual budget and deleted text begin revisingdeleted text end new text begin createsnew text end an instruction and curriculum improvement plan deleted text begin that alignsdeleted text end new text begin to alignnew text end curriculum, assessment of student progress, and growth in meeting state and district academic standards and instruction.

Sec. 12.

Minnesota Statutes 2014, section 120B.11, subdivision 5, is amended to read:

Subd. 5.

Report.

Consistent with requirements for school performance reports under section 120B.36, subdivision 1, the school board shall publish a report in the local newspaper with the largest circulation in the district, by mail, or by electronic means on the district Web site. The school board shall hold an annual public meeting to review, and revise where appropriate, student achievement goals, local assessment outcomes, plans, strategies, and practices for improving curriculum and instruction and cultural competency, new text begin and efforts to equitably distribute diverse, effective, experienced, and in-field teachers, new text end and to review district success in realizing the previously adopted student achievement goals and related benchmarks and the improvement plans leading to the world's best workforce. The school board must transmit an electronic summary of its report to the commissioner in the form and manner the commissioner determines.

Sec. 13.

Minnesota Statutes 2014, section 120B.12, subdivision 2, is amended to read:

Subd. 2.

Identification; report.

deleted text begin For the 2011-2012 school year and later,deleted text end new text begin (a)new text end Each school district shall identify before the end of kindergarten, grade 1, and grade 2 students who are not reading at grade level before the end of the current school year. Reading assessments in English, and in the predominant languages of district students where practicable, must identify and evaluate students' areas of academic need related to literacy. The district also must monitor the progress and provide reading instruction appropriate to the specific needs of English learners. The district must use a locally adopted, developmentally appropriate, and culturally responsive assessment and annually report summary assessment resultsnew text begin to the commissioner by July 1. The district also must annually report a summary of the district's efforts to screen and identify students with dyslexia or convergence insufficiency disordernew text end to the commissioner by July 1.

new text begin (b) A student identified under this subdivision must be provided with alternate instruction under section 125A.56, subdivision 1. new text end

Sec. 14.

Minnesota Statutes 2014, section 120B.15, is amended to read:

120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.

(a) School districts may identify students, locally develop programs addressing instructional and affective needs, provide staff development, and evaluate programs to provide gifted and talented students with challenging and appropriate educational programs.

(b) School districts must adopt guidelines for assessing and identifying students for participation in gifted and talented programsnew text begin consistent with section 120B.11, subdivision 2, clause (2)new text end . The guidelines should include the use of:

(1) multiple and objective criteria; and

(2) assessments and procedures that are valid and reliable, fair, and based on current theory and research. Assessments and procedures should be sensitive to underrepresented groups, including, but not limited to, low-income, minority, twice-exceptional, and English learners.

(c) School districts must adopt procedures for the academic acceleration of gifted and talented studentsnew text begin consistent with section 120B.11, subdivision 2, clause (2)new text end . These procedures must include how the district will:

(1) assess a student's readiness and motivation for acceleration; and

(2) match the level, complexity, and pace of the curriculum to a student to achieve the best type of academic acceleration for that student.

(d) School districts must adopt procedures consistent with section 124D.02, subdivision 1, for early admission to kindergarten or first grade of gifted and talented learnersnew text begin consistent with section 120B.11, subdivision 2, clause (2)new text end . The procedures must be sensitive to underrepresented groups.

Sec. 15.

Minnesota Statutes 2014, section 120B.232, is amended to read:

120B.232 CHARACTER DEVELOPMENT EDUCATION.

Subdivision 1.

Character development education.

new text begin (a) new text end The legislature encourages districts to integrate or offer instruction on character education including, but not limited to, character qualities such as attentiveness, truthfulness, respect for authority, diligence, gratefulness, self-discipline, patience, forgiveness, respect for others, peacemaking, and resourcefulness. Instruction should be integrated into a district's existing programs, curriculum, or the general school environment. The commissioner shall provide assistance at the request of a district to develop character education curriculum and programs.

new text begin (b) Character development education under paragraph (a) may include a voluntary elementary, middle, and high school program that incorporates the history and values of Congressional Medal of Honor recipients and may be offered as part of the social studies, English language arts, or other curriculum, as a schoolwide character building and veteran awareness initiative, or as an after-school program, among other possibilities. new text end

new text begin Subd. 1a. new text end

new text begin Staff development; continuing education. new text end

new text begin (a) Staff development opportunities under section 122A.60 may include training in character development education that incorporates the history and values of Congressional Medal of Honor recipients under subdivision 1, paragraph (b), and is provided without cost to the interested school or district. new text end

new text begin (b) Local continuing education and relicensure committees or other local relicensure committees under section 122A.18, subdivision 4, are encouraged to approve up to six clock hours of continuing education for licensed teachers who complete the training in character development education under paragraph (a). new text end

Subd. 2.

Funding sources.

The commissioner must first use federal funds for character development education programs to the extent available under United States Code, title 20, section 7247. Districts may accept funds from private and other public sources for character development education programs developed and implemented under this sectionnew text begin , including programs funded through the Congressional Medal of Honor Foundation, among other sourcesnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 16.

Minnesota Statutes 2015 Supplement, section 120B.30, subdivision 1, is amended to read:

Subdivision 1.

Statewide testing.

(a) The commissioner, with advice from experts with appropriate technical qualifications and experience and stakeholders, consistent with subdivision 1a, shall include in the comprehensive assessment system, for each grade level to be tested, state-constructed tests developed as computer-adaptive reading and mathematics assessments for students that are aligned with the state's required academic standards under section 120B.021, include multiple choice questions, and are administered annually to all students in grades 3 through 8. State-developed high school tests aligned with the state's required academic standards under section 120B.021 and administered to all high school students in a subject other than writing must include multiple choice questions. The commissioner shall establish one or more months during which schools shall administer the tests to students each school year.

(1) Students enrolled in grade 8 through the 2009-2010 school year are eligible to be assessed under (i) the graduation-required assessment for diploma in reading, mathematics, or writing under Minnesota Statutes 2012, section 120B.30, subdivision 1, paragraphs (c), clauses (1) and (2), and (d), (ii) the WorkKeys job skills assessment, (iii) the Compass college placement test, (iv) the ACT assessment for college admission, (v) a nationally recognized armed services vocational aptitude test.

(2) Students enrolled in grade 8 in the 2010-2011 or 2011-2012 school year are eligible to be assessed under (i) the graduation-required assessment for diploma in reading, mathematics, or writing under Minnesota Statutes 2012, section 120B.30, subdivision 1, paragraph (c), clauses (1) and (2), (ii) the WorkKeys job skills assessment, (iii) the Compass college placement test, (iv) the ACT assessment for college admission, (v) a nationally recognized armed services vocational aptitude test.

(3) For students under clause (1) or (2), a school district may substitute a score from an alternative, equivalent assessment to satisfy the requirements of this paragraph.

(b) The state assessment system must be aligned to the most recent revision of academic standards as described in section 120B.023 in the following manner:

(1) mathematics;

(i) grades 3 through 8 beginning in the 2010-2011 school year; and

(ii) high school level beginning in the 2013-2014 school year;

(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 school year; and

(3) language arts and reading; grades 3 through 8 and high school level beginning in the 2012-2013 school year.

(c) For students enrolled in grade 8 in the 2012-2013 school year and later, students' state graduation requirements, based on a longitudinal, systematic approach to student education and career planning, assessment, instructional support, and evaluation, include the following:

(1) an opportunity to participate on a nationally normed college entrance exam, in grade 11 or grade 12;

(2) achievement and career and college readiness in mathematics, reading, and writing, consistent with paragraph deleted text begin (j)deleted text end new text begin (k)new text end and to the extent available, to monitor students' continuous development of and growth in requisite knowledge and skills; analyze students' progress and performance levels, identifying students' academic strengths and diagnosing areas where students require curriculum or instructional adjustments, targeted interventions, or remediation; and, based on analysis of students' progress and performance data, determine students' learning and instructional needs and the instructional tools and best practices that support academic rigor for the student; and

(3) consistent with this paragraph and section 120B.125, age-appropriate exploration and planning activities and career assessments to encourage students to identify personally relevant career interests and aptitudes and help students and their families develop a regularly reexamined transition plan for postsecondary education or employment without need for postsecondary remediation.

Based on appropriate state guidelines, students with an individualized education program may satisfy state graduation requirements by achieving an individual score on the state-identified alternative assessments.

(d) Expectations of schools, districts, and the state for career or college readiness under this subdivision must be comparable in rigor, clarity of purpose, and rates of student completion.

A student under paragraph (c), clause (2), must receive targeted, relevant, academically rigorous, and resourced instruction, which may include a targeted instruction and intervention plan focused on improving the student's knowledge and skills in core subjects so that the student has a reasonable chance to succeed in a career or college without need for postsecondary remediation. Consistent with sections 120B.13, 124D.09, 124D.091, 124D.49, and related sections, an enrolling school or district must actively encourage a student in grade 11 or 12 who is identified as academically ready for a career or college to participate in courses and programs awarding college credit to high school students. Students are not required to achieve a specified score or level of proficiency on an assessment under this subdivision to graduate from high school.

(e) Though not a high school graduation requirement, students are encouraged to participate in a nationally recognized college entrance exam. deleted text begin With funding provided by thedeleted text end new text begin To the extentnew text end statenew text begin funding for college entrance exam fees is availablenew text end , a district must pay the cost, one time, for an interested student in grade 11 or 12 to take a nationally recognized college entrance exam before graduating. A student must be able to take the exam under this paragraph at the student's high school during the school day and at any one of the multiple exam administrations available to students in the district.new text begin A district may administer the ACT or SAT or both the ACT and SAT to comply with this paragraph. If the district administers only one of these two tests and a student opts not to take that test and chooses instead to take the other of the two tests, the student may take the other test at a different time or location and remains eligible for the examination fee reimbursement.new text end

(f) The commissioner and the chancellor of the Minnesota State Colleges and Universities must collaborate in aligning instruction and assessments for adult basic education students and English learners to provide the students with diagnostic information about any targeted interventions, accommodations, modifications, and supports they need so that assessments and other performance measures are accessible to them and they may seek postsecondary education or employment without need for postsecondary remediation. When administering formative or summative assessments used to measure the academic progress, including the oral academic development, of English learners and inform their instruction, schools must ensure that the assessments are accessible to the students and students have the modifications and supports they need to sufficiently understand the assessments.

(g) Districts and schools, on an annual basis, must use career exploration elements to help students, beginning no later than grade 9, and their families explore and plan for postsecondary education or careers based on the students' interests, aptitudes, and aspirations. Districts and schools must use timely regional labor market information and partnerships, among other resources, to help students and their families successfully develop, pursue, review, and revise an individualized plan for postsecondary education or a career. This process must help increase students' engagement in and connection to school, improve students' knowledge and skills, and deepen students' understanding of career pathways as a sequence of academic and career courses that lead to an industry-recognized credential, an associate's degree, or a bachelor's degree and are available to all students, whatever their interests and career goals.

(h) A student who demonstrates attainment of required state academic standards, which include career and college readiness benchmarks, on high school assessments under subdivision 1a is academically ready for a career or college and is encouraged to participate in courses awarding college credit to high school students. Such courses and programs may include sequential courses of study within broad career areas and technical skill assessments that extend beyond course grades.

(i) As appropriate, students through grade 12 must continue to participate in targeted instruction, intervention, or remediation and be encouraged to participate in courses awarding college credit to high school students.

(j) In developing, supporting, and improving students' academic readiness for a career or college, schools, districts, and the state must have a continuum of empirically derived, clearly defined benchmarks focused on students' attainment of knowledge and skills so that students, their parents, and teachers know how well students must perform to have a reasonable chance to succeed in a career or college without need for postsecondary remediation. The commissioner, in consultation with local school officials and educators, and Minnesota's public postsecondary institutions must ensure that the foundational knowledge and skills for students' successful performance in postsecondary employment or education and an articulated series of possible targeted interventions are clearly identified and satisfy Minnesota's postsecondary admissions requirements.

(k) For students in grade 8 in the 2012-2013 school year and later, a school, district, or charter school must record on the high school transcript a student's progress toward career and college readiness, and for other students as soon as practicable.

(l) The school board granting students their diplomas may formally decide to include a notation of high achievement on the high school diplomas of those graduating seniors who, according to established school board criteria, demonstrate exemplary academic achievement during high school.

(m) The 3rd through 8th grade computer-adaptive assessment results and high school test results shall be available to districts for diagnostic purposes affecting student learning and district instruction and curriculum, and for establishing educational accountability. The commissioner must establish empirically derived benchmarks on adaptive assessments in grades 3 through 8new text begin . The commissioner, in consultation with the chancellor of the Minnesota State Colleges and Universities, must establish empirically derived benchmarks on the high school testsnew text end that reveal a trajectory toward career and college readinessnew text begin consistent with section 136F.3025new text end . The commissioner must disseminate to the public the computer-adaptive assessments and high school test results upon receiving those results.

(n) The grades 3 through 8 computer-adaptive assessments and high school tests must be aligned with state academic standards. The commissioner shall determine the testing process and the order of administration. The statewide results shall be aggregated at the site and district level, consistent with subdivision 1a.

(o) The commissioner shall include the following components in the statewide public reporting system:

(1) uniform statewide computer-adaptive assessments of all students in grades 3 through 8 and testing at the high school levels that provides appropriate, technically sound accommodations or alternate assessments;

(2) educational indicators that can be aggregated and compared across school districts and across time on a statewide basis, including average daily attendance, high school graduation rates, and high school drop-out rates by age and grade level;

(3) state results on the American College Test; and

(4) state results from participation in the National Assessment of Educational Progress so that the state can benchmark its performance against the nation and other states, and, where possible, against other countries, and contribute to the national effort to monitor achievement.

(p) For purposes of statewide accountability, "career and college ready" means a high school graduate has the knowledge, skills, and competencies to successfully pursue a career pathway, including postsecondary credit leading to a degree, diploma, certificate, or industry-recognized credential and employment. Students who are career and college ready are able to successfully complete credit-bearing coursework at a two- or four-year college or university or other credit-bearing postsecondary program without need for remediation.

(q) For purposes of statewide accountability, "cultural competence," "cultural competency," or "culturally competent" means the ability and will to interact effectively with people of different cultures, native languages, and socioeconomic backgrounds.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 17.

Minnesota Statutes 2014, section 120B.30, subdivision 2, is amended to read:

Subd. 2.

Department of Education assistance.

new text begin (a) new text end The Department of Education shall contract for professional and technical services according to competitive solicitation procedures under chapter 16C for purposes of this section.

new text begin (b) A proposal submitted under this section must include disclosures containing: new text end

new text begin (1) comprehensive information regarding test administration monitoring practices; and new text end

new text begin (2) data privacy safeguards for student information to be transmitted to or used by the proposing entity. new text end

new text begin Information provided in the proposal is not security information or trade secret information for purposes of section 13.37. new text end

Sec. 18.

Minnesota Statutes 2014, section 120B.30, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Database. new text end

new text begin The commissioner shall establish a reporting system for teachers, administrators, and students to report service disruptions and technical interruptions. The information reported through this system shall be maintained in a database accessible through the department's Web site. new text end

Sec. 19.

Minnesota Statutes 2015 Supplement, section 120B.301, is amended to read:

120B.301 LIMITS ON LOCAL TESTING.

(a) For students in grades 1 through 6, the cumulative total amount of time spent taking locally adopted districtwide or schoolwide assessments must not exceed ten hours per school year. For students in grades 7 through 12, the cumulative total amount of time spent taking locally adopted districtwide or schoolwide assessments must not exceed 11 hours per school year. For purposes of this paragraph, International Baccalaureate and Advanced Placement exams are not considered locally adopted assessments.

(b) A district or charter school is exempt from the requirements of paragraph (a), if the district or charter school, in consultation with the exclusive representative of the teachers or other teachers if there is no exclusive representative of the teachers, decides to exceed a time limit in paragraph (a) and includes in the report required under section 120B.11, subdivision 5.

new text begin (c) A district or charter school, before the first day of each school year, must publish on its Web site a comprehensive calendar of standardized tests to be administered in the district or charter school during that school year. The calendar must provide the rationale for administering each assessment and indicate whether the assessment is a local option or required by state or federal law. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 20.

new text begin [120B.304] SCHOOL DISTRICT ASSESSMENT COMMITTEE. new text end

new text begin (a) A school district that does not have an agreement between the school board and the exclusive representative of the teachers about selecting assessments must establish a district assessment committee to advise the school board on administering standardized assessments to students in addition to the assessments required under section 120B.30 and applicable federal law unless paragraph (b) applies. The committee must include an equal number of teachers and administrators and at least one parent of a student in the district and may include at least one representative from each school site in the district. new text end

new text begin (b) A school district may seek this assessment advice from the district advisory committee under section 120B.11, subdivision 3, instead of establishing a committee under this section. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 21.

Minnesota Statutes 2015 Supplement, section 120B.31, subdivision 4, is amended to read:

Subd. 4.

Student performance data.

In developing policies and assessment processes to hold schools and districts accountable for high levels of academic standards under section 120B.021, the commissioner shall aggregate new text begin and disaggregate new text end student data over time to report new text begin summary new text end student performance and growth levelsnew text begin and, under section 120B.11, subdivision 2, clause (2), student learning and outcome datanew text end measured at the school, school district, and statewide level. deleted text begin When collecting and reporting the performance data,deleted text end The commissioner shall new text begin use the student categories identified under the federal Elementary and Secondary Education Act, as most recently reauthorized, and student categories of homelessness, ethnicity, race, home language, immigrant, refugee status, English learners under section 124D.59, free or reduced-price lunch, and other categories designated by federal law to new text end organize and report the data so that state and local policy makers can understand the educational implications of changes in districts' demographic profiles over timedeleted text begin , including student homelessness,deleted text end as data are availabledeleted text begin , among other demographic factorsdeleted text end . Any report the commissioner disseminates containing summary data on student performance must integrate student performance and the demographic factors that strongly correlate with that performance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2017-2018 school year and later. new text end

Sec. 22.

Minnesota Statutes 2014, section 120B.31, is amended by adding a subdivision to read:

new text begin Subd. 4a. new text end

new text begin Student participation. new text end

new text begin The commissioner shall create and publish a form for parents and guardians to complete if they refuse to have their student participate in state or locally required standardized testing. The form must state why there are state academic standards, indicate which tests are aligned with state standards, and what consequences, if any, the school or student may face if a student does not participate in state or locally required standardized testing. This form must ask parents to indicate a reason for their refusal. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 23.

Minnesota Statutes 2014, section 120B.31, subdivision 5, is amended to read:

Subd. 5.

deleted text begin Parentdeleted text end new text begin Access to new text end information.

To ensure the effective involvement of parents and to support a partnership between the school and parents, each district shall deleted text begin annuallydeleted text end provide parents new text begin and teachers new text end a timely written summary, in an electronic or other format, of their student's current and longitudinal performance and progress on the state's academic content standards as measured by state assessments. Providing parents with a summary prepared by the Department of Education fulfills the requirements of this subdivision.

Sec. 24.

Minnesota Statutes 2014, section 120B.31, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Retaliation prohibited. new text end

new text begin An employee who discloses information to the commissioner or a parent or guardian about service disruptions or technical interruptions related to administering assessments under this section is protected under section 181.932, governing disclosure of information by employees. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 25.

Minnesota Statutes 2014, section 120B.35, is amended to read:

120B.35 STUDENT ACADEMIC ACHIEVEMENT AND GROWTH.

Subdivision 1.

deleted text begin School anddeleted text end Student indicators of growth and achievement.

The commissioner must develop and implement a system for measuring and reporting academic achievement and individual student growth, consistent with the statewide educational accountability and reporting system. The system components must measure and separately report the deleted text begin adequate yearly progressdeleted text end new text begin federal expectationsnew text end of schools and the growth of individual students: students' current achievement in schools under subdivision 2; and individual students' educational growth over time under subdivision 3. The system also must include statewide measures of student academic growth that identify schools with high levels of growth, and also schools with low levels of growth that need improvement. deleted text begin When determining a school's effect,deleted text end The data must include both statewide measures of student achievement and, to the extent annual tests are administered, indicators of achievement growth that take into account a student's prior achievement. Indicators of achievement and prior achievement must be based on highly reliable statewide or districtwide assessments. Indicators that take into account a student's prior achievement must not be used to disregard a school's low achievement or to exclude a school from a program to improve low achievement levels.

Subd. 2.

Federal Expectations for student academic achievement.

(a) Each school year, a school district must determine if the student achievement levels at each school site meet federal expectations. If student achievement levels at a school site do not meet federal expectations deleted text begin and the site has not made adequate yearly progress for two consecutive school years, beginning with the 2001-2002 school yeardeleted text end , the district must work with the school site to adopt a plan to raise student achievement levels to meet federal expectations. The commissioner of education shall establish student academic achievement levels to comply with this paragraph.

(b) School sites identified as not meeting federal expectations must develop continuous improvement plans in order to meet federal expectations for student academic achievement. The department, at a district's request, must assist the district and the school deleted text begin sitedeleted text end new text begin sitesnew text end in developing a plan to improve student achievement. The plan must include parental involvement components.

(c) The commissioner must:

(1) assist school sites and districts identified as not meeting federal expectations; and

(2) provide technical assistance to schools that integrate student achievement measures into the school continuous improvement plan.

(d) The commissioner shall establish and maintain a continuous improvement Web site designed to make new text begin aggregated and disaggregated student growth and, under section 120B.11, subdivision 2, clause (2), student learning and outcome new text end data on every school and district available to parents, teachers, administrators, community members, and the general publicnew text begin , consistent with this sectionnew text end .

Subd. 3.

State growth target; other state measures.

(a)new text begin (1)new text end The state's educational assessment system measuring individual students' educational growth is based on indicators of achievement growth that show an individual student's prior achievement. Indicators of achievement and prior achievement must be based on highly reliable statewide or districtwide assessments.

new text begin (2) For purposes of paragraphs (b), (c), and (d), the commissioner must analyze and report separate categories of information using the student categories identified under the federal Elementary and Secondary Education Act, as most recently reauthorized and, in addition to the Karen community, other student categories as determined by the total Minnesota population at or above the 1,000-person threshold based on the most recent decennial census, including ethnicity; race; refugee status; English learners under section 124D.59; home language; free or reduced-price lunch; immigrant; and all students enrolled in a Minnesota public school who are currently or were previously in foster care, except that such disaggregation and cross tabulation is not required if the number of students in a category is insufficient to yield statistically reliable information or the results would reveal personally identifiable information about an individual student. new text end

(b) The commissioner, in consultation with a stakeholder group that includes assessment and evaluation directors, district staff, experts in culturally responsive teaching, and researchers, must implement a model that uses a value-added growth indicator and includes criteria for identifying schools and school districts that demonstrate medium and high growth under section 120B.299, subdivisions 8 and 9, and may recommend other value-added measures under section 120B.299, subdivision 3. The model may be used to advance educators' professional development and replicate programs that succeed in meeting students' diverse learning needs. Data on individual teachers generated under the model are personnel data under section 13.43. The model must allow users to:

(1) report student growth consistent with this paragraph; and

(2) for all student categories, report and compare aggregated and disaggregated state new text begin student new text end growth new text begin and, under section 120B.11, subdivision 2, clause (2), student learning and outcome new text end data using the deleted text begin ninedeleted text end student categories identified under the federal deleted text begin 2001 No Child Left Behind Act and two student gender categories of male and female, respectively, following appropriate reporting practices to protect nonpublic student datadeleted text end new text begin Elementary and Secondary Education Act, as most recently reauthorized, and other student categories under paragraph (a), clause (2)new text end .

The commissioner must report measures of student growthnew text begin and, under section 120B.11, subdivision 2, clause (2), student learning and outcome datanew text end , consistent with this paragraph, including the English language development, academic progress, and oral academic development of English learners and their native language development if the native language is used as a language of instructionnew text begin , and include data on all pupils enrolled in a Minnesota public school course or program who are currently or were previously counted as an English learner under section 124D.59new text end .

(c) When reporting student performance under section 120B.36, subdivision 1, the commissioner annually, beginning July 1, 2011, must report two core measures indicating the extent to which current high school graduates are being prepared for postsecondary academic and career opportunities:

(1) a preparation measure indicating the number and percentage of high school graduates in the most recent school year who completed course work important to preparing them for postsecondary academic and career opportunities, consistent with the core academic subjects required for admission to Minnesota's public colleges and universities as determined by the Office of Higher Education under chapter 136A; and

(2) a rigorous coursework measure indicating the number and percentage of high school graduates in the most recent school year who successfully completed one or more college-level advanced placement, international baccalaureate, postsecondary enrollment options including concurrent enrollment, other rigorous courses of study under section 120B.021, subdivision 1a, or industry certification courses or programs.

When reporting the core measures under clauses (1) and (2), the commissioner must also analyze and report separate categories of information using the deleted text begin ninedeleted text end student categories identified under the federal deleted text begin 2001 No Child Left Behind Act and two student gender categories of male and female, respectively, following appropriate reporting practices to protect nonpublic student datadeleted text end new text begin Elementary and Secondary Education Act, as most recently reauthorized, and other student categories under paragraph (a), clause (2)new text end .

(d) When reporting student performance under section 120B.36, subdivision 1, the commissioner annually, beginning July 1, 2014, must report summary data on school safety and students' engagement and connection at schoolnew text begin , consistent with the student categories identified under paragraph (a), clause (2)new text end . The summary data under this paragraph are separate from and must not be used for any purpose related to measuring or evaluating the performance of classroom teachers. The commissioner, in consultation with qualified experts on student engagement and connection and classroom teachers, must identify highly reliable variables that generate summary data under this paragraph. The summary data may be used at school, district, and state levels only. Any data on individuals received, collected, or created that are used to generate the summary data under this paragraph are nonpublic data under section 13.02, subdivision 9.

(e) For purposes of statewide educational accountability, the commissioner must identify and report measures that demonstrate the success of learning year program providers under sections 123A.05 and 124D.68, among other such providers, in improving students' graduation outcomes. The commissioner, beginning July 1, 2015, must annually report summary data on:

(1) the four- and six-year graduation rates of students under this paragraph;

(2) the percent of students under this paragraph whose progress and performance levels are meeting career and college readiness benchmarks under section 120B.30, subdivision 1; and

(3) the success that learning year program providers experience in:

(i) identifying at-risk and off-track student populations by grade;

(ii) providing successful prevention and intervention strategies for at-risk students;

(iii) providing successful recuperative and recovery or reenrollment strategies for off-track students; and

(iv) improving the graduation outcomes of at-risk and off-track students.

The commissioner may include in the annual report summary data on other education providers serving a majority of students eligible to participate in a learning year program.

(f) The commissioner, in consultation with recognized experts with knowledge and experience in assessing the language proficiency and academic performance of new text begin all new text end English learnersnew text begin enrolled in a Minnesota public school course or program who are currently or were previously counted as an English learner under section 124D.59new text end , must identify and report appropriate and effective measures to improve current categories of language difficulty and assessments, and monitor and report data on students' English proficiency levels, program placement, and academic language development, including oral academic language.

Subd. 4.

Improving schools.

Consistent with the requirements of this section, beginning June 20, 2012, the commissioner of education must annually report to the public and the legislature best practices implemented in those schools that deleted text begin demonstrate high growth compared to the state growth targetdeleted text end new text begin are identified as high performing under federal expectationsnew text end .

Subd. 5.

Improving graduation rates for students with emotional or behavioral disorders.

(a) A district must develop strategies in conjunction with parents of students with emotional or behavioral disorders and the county board responsible for implementing sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in school, when the district has a drop-out rate for students with an emotional or behavioral disorder in grades 9 through 12 exceeding 25 percent.

(b) A district must develop a plan in conjunction with parents of students with emotional or behavioral disorders and the local mental health authority to increase the graduation rates of students with emotional or behavioral disorders. A district with a drop-out rate for children with an emotional or behavioral disturbance in grades 9 through 12 that is in the top 25 percent of all districts shall submit a plan for review and oversight to the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2017-2018 school year and later. new text end

Sec. 26.

Minnesota Statutes 2014, section 120B.36, as amended by Laws 2015, First Special Session chapter 3, article 2, section 8, is amended to read:

120B.36 SCHOOL ACCOUNTABILITYdeleted text begin ; APPEALS PROCESSdeleted text end .

Subdivision 1.

School performance reports.

(a) The commissioner shall report student academic performance new text begin data new text end under section 120B.35, deleted text begin subdivisiondeleted text end new text begin subdivisionsnew text end 2new text begin and 3new text end ; the percentages of students showing low, medium, and high growth under section 120B.35, subdivision 3, paragraph (b); school safety and student engagement and connection under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section 120B.35, subdivision 3, paragraph (c); the percentage of students under section 120B.35, subdivision 3, paragraph (b), clause (2), whose progress and performance levels are meeting career and college readiness benchmarks under sections 120B.30, subdivision 1, and 120B.35, subdivision 3, paragraph (e); longitudinal data on the progress of eligible districts in reducing disparities in students' academic achievement and realizing racial and economic integration under section 124D.861; the acquisition of English, and where practicable, native language academic literacy, including oral academic language, and the academic progress of new text begin all new text end English learners deleted text begin under section 124D.59, subdivisions 2 and 2adeleted text end new text begin enrolled in a Minnesota public school course or program who are currently or were previously counted as English learners under section 124D.59new text end ; two separate student-to-teacher ratios that clearly indicate the definition of teacher consistent with sections 122A.06 and 122A.15 for purposes of determining these ratios; staff characteristics excluding salaries; student enrollment demographics; new text begin foster care status, including all students enrolled in a Minnesota public school course or program who are currently or were previously in foster care, new text end student homelessnessnew text begin ,new text end and district mobility; and extracurricular activities. The report also must indicate a school's deleted text begin adequate yearly deleted text end deleted text begin progressdeleted text end status under applicable federal lawdeleted text begin , and must not set any designations applicable to high- and low-performing schools due solely to adequate yearly progress statusdeleted text end .

(b) The commissioner shall develop, annually update, and post on the department Web site school performance reports.

(c) The commissioner must make available performance reports by the beginning of each school year.

(d) A school or district may appeal its deleted text begin adequate yearly progress status in writing to the commissioner within 30 days of receiving the notice of its statusdeleted text end new text begin results in a form and manner determined by the commissioner and consistent with federal lawnew text end . The commissioner's decision to uphold or deny an appeal is final.

(e) School performance data are nonpublic data under section 13.02, subdivision 9, until the commissioner publicly releases the data. The commissioner shall annually post school performance reports to the department's public Web site no later than September 1, except that in years when the reports reflect new performance standards, the commissioner shall post the school performance reports no later than October 1.

Subd. 2.

deleted text begin Adequate yearlydeleted text end new text begin Studentnew text end progress and other data.

new text begin (a) new text end All data the department receives, collects, or creates new text begin under section 120B.11, governing the world's best workforce or new text end to determine deleted text begin adequate yearly progress status under Public Law 107-110, section 1116deleted text end new text begin federal expectations under the most recently reauthorized Elementary and Secondary Education Actnew text end , set state growth targets, and determine student growthnew text begin , learning, and outcomes under section 120B.35new text end are nonpublic data under section 13.02, subdivision 9, until the commissioner publicly releases the data.

new text begin (b)new text end Districts must provide parents sufficiently detailed summary data to permit parents to appeal under deleted text begin Public Law 107-110, section 1116(b)(2)deleted text end new text begin the most recently reauthorized federal Elementary and Secondary Education Actnew text end . The commissioner shall annually post federal deleted text begin adequate yearly progress datadeleted text end new text begin expectationsnew text end and state student growthnew text begin , learning, and outcomenew text end data to the department's public Web site no later than September 1, except that in years when deleted text begin adequate yearly progress reflectsdeleted text end new text begin data or federal expectations reflectnew text end new performance standards, the commissioner shall post deleted text begin federal adequate yearly progressdeleted text end datanew text begin on federal expectationsnew text end and state student growth data no later than October 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2017-2018 school year and later. new text end

Sec. 27.

new text begin [121A.065] DISTRICT SURVEYS TO COLLECT STUDENT INFORMATION; PARENT NOTICE AND OPPORTUNITY FOR OPTING OUT. new text end

new text begin (a) School districts and charter schools, in consultation with parents, must develop and adopt policies on conducting student surveys and using and distributing personal information on students collected from the surveys. School districts and charter schools must: new text end

new text begin (1) directly notify parents of these policies at the beginning of each school year and after making any substantive policy changes; new text end

new text begin (2) inform parents at the beginning of the school year if the district or school has identified specific or approximate dates for administering surveys and give parents reasonable notice of planned surveys scheduled after the start of the school year; new text end

new text begin (3) give parents direct, timely notice, by United States mail, e-mail, or other direct form of communication, when their students are scheduled to participate in a student survey; and new text end

new text begin (4) give parents the opportunity to review the survey and to opt their students out of participating in the survey. new text end

new text begin (b) School districts and charter schools must not impose an academic or other penalty upon a student who opts out of participating in a survey under paragraph (a). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 28.

Minnesota Statutes 2014, section 121A.53, is amended to read:

121A.53 REPORT TO COMMISSIONER OF EDUCATION.

Subdivision 1.

Exclusions and expulsionsnew text begin ; physical assaultsnew text end .

The school board must report through the department electronic reporting system each exclusion or expulsionnew text begin and each physical assault of a district employee by a studentnew text end within 30 days of the effective date of the new text begin dismissal new text end action new text begin or assault new text end to the commissioner of education. This report must include a statement of alternative educational servicesnew text begin , or other sanction, intervention, or resolution in response to the assaultnew text end given the pupil and the reason for, the effective date, and the duration of the exclusion or expulsionnew text begin or other sanction, intervention, or resolutionnew text end . The report must also include the student's age, grade, gender, race, and special education status.

Subd. 2.

Report.

new text begin (a) new text end The school board must include state student identification numbers of affected pupils on all dismissal new text begin and other disciplinary new text end reports required by the department. The department must report annually to the commissioner summary data on the number of dismissals new text begin and physical assaults of district employees by a student new text end by age, grade, gender, race, and special education status of the affected pupils. All dismissal new text begin and other disciplinary new text end reports must be submitted through the department electronic reporting system.

new text begin (b) The commissioner must aggregate the district data reported under this section and include the aggregated data, including aggregated data on physical assaults of a district employee by a student, in the annual school performance reports under section 120B.36. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 29.

Minnesota Statutes 2014, section 121A.61, subdivision 3, is amended to read:

Subd. 3.

Policy components.

The policy must include at least the following components:

(a) rules governing student conduct and procedures for informing students of the rules;

(b) the grounds for removal of a student from a class;

(c) the authority of the classroom teacher to remove students from the classroom pursuant to procedures and rules established in the district's policy;

(d) the procedures for removal of a student from a class by a teacher, school administrator, or other school district employee;

(e) the period of time for which a student may be removed from a class, which may not exceed five class periods for a violation of a rule of conduct;

(f) provisions relating to the responsibility for and custody of a student removed from a class;

(g) the procedures for return of a student to the specified class from which the student has been removed;

(h) the procedures for notifying a student and the student's parents or guardian of violations of the rules of conduct and of resulting disciplinary actions;

(i) any procedures determined appropriate for encouraging early involvement of parents or guardians in attempts to improve a student's behavior;

(j) any procedures determined appropriate for encouraging early detection of behavioral problems;

(k) any procedures determined appropriate for referring a student in need of special education services to those services;

(1) the procedures for consideration of whether there is a need for a further assessment or of whether there is a need for a review of the adequacy of a current individualized education program of a student with a disability who is removed from class;

(m) procedures for detecting and addressing chemical abuse problems of a student while on the school premises;

(n) the minimum consequences for violations of the code of conduct;

(o) procedures for immediate and appropriate interventions tied to violations of the code;

(p) a provision that states that a teacher, school employee, school bus driver, or other agent of a district may use reasonable force in compliance with section 121A.582 and other laws; deleted text begin anddeleted text end

(q) an agreement regarding procedures to coordinate crisis services to the extent funds are available with the county board responsible for implementing sections 245.487 to 245.4889 for students with a serious emotional disturbance or other students who have an individualized education program whose behavior may be addressed by crisis interventionnew text begin ; andnew text end

new text begin (r) a provision that states a student must be removed from class immediately if the student engages in assault or violent behavior. For purposes of this paragraph, "assault" has the meaning given it in section 609.02, subdivision 10. The removal shall be for a period of time deemed appropriate by the principal, in consultation with the teachernew text end .

Sec. 30.

Minnesota Statutes 2014, section 121A.64, is amended to read:

121A.64 NOTIFICATION; TEACHERS' LEGITIMATE EDUCATIONAL INTEREST.

(a) A classroom teacher has a legitimate educational interest in knowing which students placed in the teacher's classroom have a history of violent behaviornew text begin , including any documented physical assault of a district employee by the student,new text end and must be notified before such students are placed in the teacher's classroom.

(b) Representatives of the school board and the exclusive representative of the teachers shall discuss issues related to the model policy on student records adopted under Laws 1999, chapter 241, article 9, section 50, and any modifications adopted under Laws 2003, First Special Session chapter 9, for notifying classroom teachers and other school district employees having a legitimate educational interest in knowing about students with a history of violent behaviornew text begin , including any documented physical assault of a district employee by studentsnew text end placed in classrooms. The representatives of the school board and the exclusive representative of the teachers also may discuss the need for intervention services or conflict resolution or training for staff related to placing students with a history of violent behavior in teachers' classrooms.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 31.

Minnesota Statutes 2014, section 123B.045, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Teacher-governed schools; grants. new text end

new text begin (a) Consistent with subdivision 1 authorizing a school board to agree to assign certain autonomies and responsibilities to a school site, and subject to a memorandum of understanding between the school board and the exclusive representative of the teachers, a grant program is established to encourage licensed teachers employed at a school site to explore and develop organizational models for teaching and learning; provide curriculum and corresponding formative, interim, and summative assessments; measure and evaluate teacher performance; assign teaching positions and restructure instructional work; provide professional development to support teachers restructuring their work; allocate revenue; assert autonomy and leadership; and pursue other such policies, strategies, and activities for creating teacher-governed schools. new text end

new text begin (b) The commissioner, after receiving documentation of the approved agreement between the parties under subdivision 1, paragraph (d), shall award grants on a first-come, first-served basis until appropriated funds are expended according to this paragraph: new text end

new text begin (1) a planning grant of up to $50,000 during the first year of the parties' agreement; and new text end

new text begin (2) an implementation grant of up to $100,000 during each of the next two years of the parties' agreement. new text end

new text begin (c) A grant recipient that terminates an agreement before the end of a school year must return a pro rata portion of the grant to the commissioner, the amount of which the commissioner must determine based upon the number of school days remaining in the school year after the agreement is terminated. Grant recipients are encouraged to seek matching funds or in-kind contributions from nonstate sources to supplement the grant awards. new text end

new text begin (d) A school district receiving a grant must transmit to the commissioner in an electronic format and post on its Web site by the end of the school year readily accessible information about recommended best practices based on its experience and progress under this section. The commissioner must make information about these recommended best practices readily available to interested districts and schools throughout Minnesota. new text end

Sec. 32.

Minnesota Statutes 2014, section 124D.03, subdivision 5a, is amended to read:

Subd. 5a.

Lotteries.

If a school district has more applications than available seats at a specific grade level, it must hold an impartial lottery following the January 15 deadline to determine which students will receive seats. Siblings of currently enrolled students deleted text begin anddeleted text end new text begin , new text end applications related to an approved integration and achievement plannew text begin , and children of the school district's staffnew text end must receive priority in the lottery. The process for the school district lottery must be established in school district policy, approved by the school board, and posted on the school district's Web site.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for nonresident pupil applications not yet accepted or rejected by the school district. new text end

Sec. 33.

Minnesota Statutes 2014, section 124D.15, subdivision 3a, is amended to read:

Subd. 3a.

Application and reporting requirements.

(a) A school readiness program provider must deleted text begin submitdeleted text end new text begin include new text end a biennial plan deleted text begin for approval by the commissioner before receiving aid under section 124D.16. The plan must describedeleted text end new text begin in the district's world's best workforce plan under section 120B.11, describingnew text end how the new text begin school readiness new text end program meets the program requirements under subdivision 3. deleted text begin A school district by April 1 must submit the plan for approval by the commissioner in the form and manner prescribed by the commissioner. One-half the districts must first submit the plan by April 1, 2006, and one-half the districts must first submit the plan by April 1, 2007, as determined by the commissioner.deleted text end

(b) Programs receiving school readiness funds annually must submit a report to the department.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 34.

Minnesota Statutes 2015 Supplement, section 124D.231, subdivision 2, is amended to read:

Subd. 2.

Full-service community school program.

(a) The commissioner shall provide funding to eligible school sites to plan, implement, and improve full-service community schools. Eligible school sites must meet one of the following criteria:

(1) the school is on a development plan for continuous improvement under section 120B.35, subdivision 2; or

(2) the school is in a district that has an achievement and integration plan approved by the commissioner of education under sections 124D.861 and 124D.862.

(b) An eligible school site may receive up to deleted text begin $100,000deleted text end new text begin $150,000new text end annually. School sites receiving funding under this section shall hire or contract with a partner agency to hire a site coordinator to coordinate services at each covered school site.

(c) new text begin Of grants awarded, new text end implementation funding of up to $20,000 must be available for up to one year for planning for school sites. At the end of this period, the school must submit a full-service community school plan, pursuant to paragraph (g).new text begin If the site decides not to use planning funds, the plan must be submitted with the application.new text end

(d) The commissioner shall deleted text begin dispense the funds todeleted text end new text begin consider additional school factors when dispensing funds including:new text end schools with significant populations of students receiving free or reduced-price lunchesdeleted text begin . Schools withdeleted text end new text begin ;new text end significant homeless and highly mobile deleted text begin students shall also be a priority. The commissioner must also dispense the funds in a manner to ensuredeleted text end new text begin rates; and new text end equity among urban, suburban, and greater Minnesota schools.

(e) A school site must establish a school leadership team responsible for developing school-specific programming goals, assessing program needs, and overseeing the process of implementing expanded programming at each covered site. The school leadership team shall have between 12 to 15 members and shall meet the following requirements:

(1) at least 30 percent of the members are parents and 30 percent of the members are teachers at the school site and must include the school principal and representatives from partner agencies; and

(2) the school leadership team must be responsible for overseeing the baseline analyses under paragraph (f). A school leadership team must have ongoing responsibility for monitoring the development and implementation of full-service community school operations and programming at the school site and shall issue recommendations to schools on a regular basis and summarized in an annual report. These reports shall also be made available to the public at the school site and on school and district Web sites.

(f) School sites must complete a baseline analysis prior to beginning programming as a full-service community school. The analysis shall include:

(1) a baseline analysis of needs at the school site, led by the school leadership team, which shall include the following elements:

(i) identification of challenges facing the school;

(ii) analysis of the student body, including:

(A) number and percentage of students with disabilities and needs of these students;

(B) number and percentage of students who are English learners and the needs of these students;

(C) number of students who are homeless or highly mobile; and

(D) number and percentage of students receiving free or reduced-price lunch and the needs of these students;

(iii) analysis of enrollment and retention rates for students with disabilities, English learners, homeless and highly mobile students, and students receiving free or reduced-price lunch;

(iv) analysis of suspension and expulsion data, including the justification for such disciplinary actions and the degree to which particular populations, including, but not limited to, students of color, students with disabilities, students who are English learners, and students receiving free or reduced-price lunch are represented among students subject to such actions;

(v) analysis of school achievement data disaggregated by major demographic categories, including, but not limited to, race, ethnicity, English learner status, disability status, and free or reduced-price lunch status;

(vi) analysis of current parent engagement strategies and their success; and

(vii) evaluation of the need for and availability of wraparound services, including, but not limited to:

(A) mechanisms for meeting students' social, emotional, and physical health needs, which may include coordination of existing services as well as the development of new services based on student needs; and

(B) strategies to create a safe and secure school environment and improve school climate and discipline, such as implementing a system of positive behavioral supports, and taking additional steps to eliminate bullying;

(2) a baseline analysis of community assets and a strategic plan for utilizing and aligning identified assets. This analysis should include, but is not limited to, a documentation of individuals in the community, faith-based organizations, community and neighborhood associations, colleges, hospitals, libraries, businesses, and social service agencies who may be able to provide support and resources; and

(3) a baseline analysis of needs in the community surrounding the school, led by the school leadership team, including, but not limited to:

(i) the need for high-quality, full-day child care and early childhood education programs;

(ii) the need for physical and mental health care services for children and adults; and

(iii) the need for job training and other adult education programming.

(g) Each school site receiving funding under this section must establish at least two of the following types of programming:

(1) early childhood:

(i) early childhood education; and

(ii) child care services;

(2) academic:

(i) academic support and enrichment activities, including expanded learning time;

(ii) summer or after-school enrichment and learning experiences;

(iii) job training, internship opportunities, and career counseling services;

(iv) programs that provide assistance to students who have been truant, suspended, or expelled; and

(v) specialized instructional support services;

(3) parental involvement:

(i) programs that promote parental involvement and family literacydeleted text begin , including the Reading First and Early Reading First programs authorized under part B of title I of the Elementary and Secondary Education Act of 1965, United States Code, title 20, section 6361, et seq.deleted text end ;

(ii) parent leadership development activities; and

(iii) parenting education activities;

(4) mental and physical health:

(i) mentoring and other youth development programs, including peer mentoring and conflict mediation;

(ii) juvenile crime prevention and rehabilitation programs;

(iii) home visitation services by teachers and other professionals;

(iv) developmentally appropriate physical education;

(v) nutrition services;

(vi) primary health and dental care; and

(vii) mental health counseling services;

(5) community involvement:

(i) service and service-learning opportunities;

(ii) adult education, including instruction in English as a second language; and

(iii) homeless prevention services;

(6) positive discipline practices; and

(7) other programming designed to meet school and community needs identified in the baseline analysis and reflected in the full-service community school plan.

(h) The school leadership team at each school site must develop a full-service community school plan detailing the steps the school leadership team will take, including:

(1) timely establishment and consistent operation of the school leadership team;

(2) maintenance of attendance records in all programming components;

(3) maintenance of measurable data showing annual participation and the impact of programming on the participating children and adults;

(4) documentation of meaningful and sustained collaboration between the school and community stakeholders, including local governmental units, civic engagement organizations, businesses, and social service providers;

(5) establishment and maintenance of partnerships with institutions, such as universities, hospitals, museums, or not-for-profit community organizations to further the development and implementation of community school programming;

(6) ensuring compliance with the district nondiscrimination policy; and

(7) plan for school leadership team development.

Sec. 35.

Minnesota Statutes 2014, section 124D.59, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin English learner data. new text end

new text begin When data on English learners are reported for purposes of educational accountability, English learner data must include all pupils enrolled in a Minnesota public school course or program who are currently or were previously counted as an English learner under this section. Reported data must be disaggregated by currently counted and previously counted English learners. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2017-2018 school year and later. new text end

Sec. 36.

Minnesota Statutes 2015 Supplement, section 124D.73, subdivision 4, is amended to read:

Subd. 4.

Participating school; American Indian school.

"Participating school" and "American Indian school" mean a school that:

(1) is not operated by a school district; and

(2) is eligible for a grant under federal Title deleted text begin VIIdeleted text end new text begin VInew text end of the Elementary and Secondary Education Act for the education of American Indian children.

Sec. 37.

new text begin [124D.8957] PREKINDERGARTEN THROUGH GRADE 12 PARENTAL RIGHTS CODED ELSEWHERE. new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The sections referred to in subdivisions 2 to 30 are codified outside this section. Those sections include many but not all the sections governing parental rights related to topics in prekindergarten through grade 12 education. new text end

new text begin Subd. 2. new text end

new text begin Compulsory instruction. new text end

new text begin Parental rights related to compulsory instruction, including the right to withdraw a child from school; to receive notice related to transfer of disciplinary records; to excuse a child from school for illnesses, appointments, or religious events; and the right of noncustodial parents to access school records and conferences, among other rights, are governed by section 120A.22. new text end

new text begin Subd. 3. new text end

new text begin Longitudinal data. new text end

new text begin The parental right to annual summary longitudinal performance and progress data is governed by section 120B.31. new text end

new text begin Subd. 4. new text end

new text begin Antibullying. new text end

new text begin Parental rights related to school district antibullying policies, including the right to be involved in developing the policies, the right to be notified of incidents of prohibited conduct, and the right to be informed of data practices laws, are governed by section 121A.031. new text end

new text begin Subd. 5. new text end

new text begin Student discipline policies. new text end

new text begin The parental right to notice in student discipline policies of rights under the Safe and Supportive Minnesota Schools Act is governed by section 121A.0311. new text end

new text begin Subd. 6. new text end

new text begin Early childhood development screening. new text end

new text begin Parental rights to certain notice requirements related to early childhood development screening and to receive results of early childhood development screening are governed by section 121A.17. The parental right to provide consent before individual screening data may be disclosed to a school district is governed by section 121A.18. new text end

new text begin Subd. 7. new text end

new text begin Chemical abuse. new text end

new text begin The parental right to be informed of a reported case of chemical abuse by a minor student is governed by section 121A.26. new text end

new text begin Subd. 8. new text end

new text begin Pesticides. new text end

new text begin The parental right to be notified regarding the use of pesticides at a school is governed by the Janet B. Johnson Parents' Right-to-Know Act under section 121A.30. new text end

new text begin Subd. 9. new text end

new text begin Student dismissal. new text end

new text begin The parental right to notice and a meeting regarding the removal of a student for more than ten days is governed by section 121A.45. new text end

new text begin Subd. 10. new text end

new text begin Exclusion and expulsion. new text end

new text begin The parental right to be included in exclusion or expulsion hearing procedures, including access to records, ability to testify and present evidence, and inclusion in the student's readmission plan, is governed by section 121A.47. new text end

new text begin Subd. 11. new text end

new text begin Exclusion and expulsion appeal. new text end

new text begin The parental right to notice of the right to appeal an exclusion or expulsion decision is governed by section 121A.49. new text end

new text begin Subd. 12. new text end

new text begin Reinstatement after termination of dismissal. new text end

new text begin The parental right to notice of a student's right to be reinstated after the termination of dismissal is governed by section 121A.54. new text end

new text begin Subd. 13. new text end

new text begin Interdistrict cooperation. new text end

new text begin The parental right to notice of an informational school board meeting relating to discontinuing interdistrict cooperation is governed by section 123A.32. new text end

new text begin Subd. 14. new text end

new text begin Background checks. new text end

new text begin The parental right to notice of a school's background check policy for hiring teachers is governed by section 123B.03. new text end

new text begin Subd. 15. new text end

new text begin Textbook fees. new text end

new text begin The parental right to notice of a school board's policy to charge fees for textbooks lost or destroyed by students is governed by section 123B.37. new text end

new text begin Subd. 16. new text end

new text begin Transportation privileges. new text end

new text begin The parental right to surrender a student's privilege to receive transportation services from a school district is governed by section 123B.88. new text end

new text begin Subd. 17. new text end

new text begin Nonresident district policies. new text end

new text begin The parental right to receive notice of: a decision on an application by a student to attend school in a nonresident district; the transportation policies of the nonresident district; and the right to be reimbursed for costs of transportation to the nonresident district's border are governed by section 124D.03. new text end

new text begin Subd. 18. new text end

new text begin Out-of-state districts. new text end

new text begin Under section 124D.04, the parental rights related to a student attending a nonresident district under section 124D.03 apply to a student attending an out-of-state district. new text end

new text begin Subd. 19. new text end

new text begin Free or reduced-price lunch eligibility. new text end

new text begin The parental right to opt a child out of disclosing a child's eligibility for free or reduced-price lunch to the Department of Education and the Department of Human Services is governed by section 124D.1115. new text end

new text begin Subd. 20. new text end

new text begin Learning year programs. new text end

new text begin The parental right to notice of optional learning year programs is governed by section 124D.128. new text end

new text begin Subd. 21. new text end

new text begin English learners programs. new text end

new text begin Parental rights related to student enrollment in programs for English learners, including notice, withdrawal, and parental involvement, are governed by section 124D.60. new text end

new text begin Subd. 22. new text end

new text begin Charter school transportation. new text end

new text begin The parental right to receive pupil transportation information from the charter school or school district providing transportation services to a charter school student is governed by section 123B.88. new text end

new text begin Subd. 23. new text end

new text begin Services for children with disabilities. new text end

new text begin The parental right to be included in determining the appropriate and necessary services for students with disabilities is governed by section 125A.027. new text end

new text begin Subd. 24. new text end

new text begin Data on children with disabilities. new text end

new text begin The parental right to notice and involvement regarding online reporting of data related to children with disabilities is governed by section 125A.085. new text end

new text begin Subd. 25. new text end

new text begin Special education alternative dispute resolution. new text end

new text begin Parental rights regarding notice, participation, and due process related to special education alternative dispute resolution procedures are governed by section 125A.091. new text end

new text begin Subd. 26. new text end

new text begin Third-party reimbursement for children with disabilities. new text end

new text begin The parental right to notice of a school district seeking reimbursement from medical assistance or MinnesotaCare for services rendered to a student with a disability is governed by section 125A.21. new text end

new text begin Subd. 27. new text end

new text begin Services provided to children with disabilities. new text end

new text begin Parental rights related to services provided to students eligible for Part C services under the Individuals with Disabilities Education Act and the right to receive written materials regarding the implementation of Part C services are governed by sections 125A.42 and 125A.48. The parental right to use mediation to resolve disputes under section 125A.42 is governed by section 125A.43. new text end

new text begin Subd. 28. new text end

new text begin Minnesota State Academies discharge. new text end

new text begin The parental right to notice of a student's discharge from the Minnesota State Academies is governed by section 125A.68. new text end

new text begin Subd. 29. new text end

new text begin Education records for military children. new text end

new text begin The parental right to education records under the Interstate Compact on Educational Opportunity for Military Children is governed by section 127A.85. new text end

new text begin Subd. 30. new text end

new text begin Appeal adverse school board decision. new text end

new text begin The parental right to appeal a school board decision adversely affecting an academic program of an enrolled student is governed by section 129C.10, subdivision 36. new text end

Sec. 38.

Minnesota Statutes 2014, section 125A.56, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

(a) Before a pupil is referred for a special education evaluation, the district must conduct and document at least two instructional strategies, alternatives, or interventions using a system of scientific, research-based instruction and intervention in academics or behavior, based on the pupil's needs, while the pupil is in the regular classroom. The pupil's teacher must document the results. A special education evaluation team may waive this requirement when it determines the pupil's need for the evaluation is urgent. This section may not be used to deny a pupil's right to a special education evaluation.

(b) A school district shall use alternative intervention services, including the assurance of mastery program under section 124D.66, or an early intervening services program under subdivision 2 to serve at-risk pupils who demonstrate a need for alternative instructional strategies or interventions.

new text begin (c) A student identified as being unable to read at grade level under section 120B.12, subdivision 2, paragraph (a), must be provided with alternate instruction under this subdivision. new text end

Sec. 39.

Minnesota Statutes 2014, section 127A.095, is amended to read:

127A.095 IMPLEMENTATION OF deleted text begin NO CHILD LEFT BEHIND ACT deleted text end new text begin ELEMENTARY AND SECONDARY EDUCATION ACTnew text end .

Subdivision 1.

Continued implementation.

The Department of Education shall continue to implement the federal deleted text begin No Child Left Behind Act, Public Law 107-110, deleted text end new text begin Elementary and Secondary Education Actnew text end without interruption.

deleted text begin Subd. 2. deleted text end

deleted text begin No Child Left Behind review. deleted text end

deleted text begin (a) The legislature intends to require the Department of Education to conduct a comprehensive review of the consolidated state plan the state submitted to the federal Department of Education to implement the No Child Left Behind Act. The Minnesota Department of Education shall seek waivers under paragraph (b). If the Department of Education is unable to obtain waivers under paragraph (b), it should recommend in its report under paragraph (b) whether the state should opt out of the No Child Left Behind Act. deleted text end

deleted text begin (b) The commissioner, by January 15, 2008, shall report to the house of representatives and senate committees having jurisdiction over kindergarten through grade 12 education policy and finance whether the department has received approval from the federal Department of Education to: deleted text end

deleted text begin (1) participate in the growth model pilot program; deleted text end

deleted text begin (2) exclude from sanctions schools that have not made adequate yearly progress due solely to a subgroup of students with disabilities not testing at a proficient level; deleted text end

deleted text begin (3) identify a school as not making adequate yearly progress only after the school has missed the adequate yearly progress targets in the same subgroup for two consecutive years; deleted text end

deleted text begin (4) determine when to hold schools accountable for including an English learner in adequate yearly progress calculations; deleted text end

deleted text begin (5) allow a district not making adequate yearly progress to offer supplemental educational services as an option before offering school choice; deleted text end

deleted text begin (6) allow a district not making adequate yearly progress to also be the supplemental educational services provider; deleted text end

deleted text begin (7) allow the state to maintain a subgroup size to 40 for the purposes of calculating adequate yearly progress for subgroups of English learners and subgroups of students with disabilities; and deleted text end

deleted text begin (8) create flexibility to enable the state to define and identify highly qualified teachers. deleted text end

Subd. 3.

Department of Management and Budget certification.

deleted text begin If the federal Department of Education does not transmit to the commissioner of education its approval of the conditions in subdivision 2, paragraph (b),deleted text end The commissioner of management and budget shall certify and report to the legislature annually beginning January 1, 2008, the amount of federal revenue, if any, that the federal government may withhold as a result of a potential state decision to discontinue implementation of the deleted text begin No Child Left Behind Actdeleted text end new text begin Elementary and Secondary Education Actnew text end . The report shall also specify the intended purpose of the federal revenue and the amount of revenue that the federal government may withhold from the state, each school district, and each charter school in each fiscal year.

Sec. 40.

Minnesota Statutes 2014, section 129C.10, subdivision 1, is amended to read:

Subdivision 1.

Governance.

new text begin (a) new text end The board of the Perpich Center for Arts Education shall consist of 15 persons. The members of the board shall be appointed by the governor with the advice and consent of the senate. At least one member must be appointed from each congressional district.

new text begin (b) All board members must complete board training requirements consistent with section 127A.19. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 41.

Minnesota Statutes 2015 Supplement, section 136F.302, subdivision 1, is amended to read:

Subdivision 1.

ACT college ready scorenew text begin ; Minnesota Comprehensive Assessment career and college ready benchmarksnew text end .

A state college or university deleted text begin maydeleted text end new text begin must new text end not require an individual to take a remedial, noncredit course in a subject area if the individual has received a college ready ACT score new text begin or met a career and college ready Minnesota Comprehensive Assessment benchmarknew text end in that subject area. new text begin Only the ACT and SAT scores an individual received and the Minnesota Comprehensive Assessment benchmarks an individual met in the previous five years are valid for purposes of this section.new text end new text begin Each state college and university must post notice of the exemption from remedial course taking on its Web site explaining student course placement requirements.new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 42.

new text begin [136F.3025] MINNESOTA COMPREHENSIVE ASSESSMENT CAREER AND COLLEGE READY BENCHMARKS; REMEDIAL EDUCATION. new text end

new text begin (a) A state college or university must not require an individual to take a remedial, noncredit course in a subject area if the individual has received a career and college ready Minnesota Comprehensive Assessment benchmark in that subject area, consistent with benchmarks established by the commissioner of education pursuant to section 120B.30, subdivision 1, paragraph (m). new text end

new text begin (b) As part of the notification of high school students and their families under section 120B.30, subdivision 1, paragraph (m), the commissioner shall include a statement that students who receive a college ready benchmark on the high school MCA are not required to take a remedial, noncredit course at a Minnesota state college or university in the corresponding subject area. new text end

new text begin EFFECTIVE DATE. new text end

new text begin If the chancellor approves the career and college ready benchmarks, paragraph (a) must be effective for the 2016-2017 school year, if practicable, but no later than the 2017-2018 school year. If the chancellor does not approve the benchmarks, paragraph (a) is effective upon the establishment of revised benchmarks. Paragraph (b) is effective for the 2016-2017 school year and later. new text end

Sec. 43.

Laws 2015, chapter 69, article 1, section 3, subdivision 28, is amended to read:

Subd. 28.

Teacher Shortage Loan Forgiveness

200,000 deleted text begin 200,000 deleted text end
new text begin 2,200,000 new text end

For the loan forgiveness program under Minnesota Statutes, section 136A.1791.

The commissioner may use no more than three percent of this appropriation to administer the program under this subdivision.new text begin The base for the program for fiscal year 2018 and later is $200,000.new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, and any unexpended funds in fiscal year 2017 do not cancel and remain available until June 30, 2019. new text end

Sec. 44.

Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 2, is amended to read:

Subd. 2.

Alternative compensation.

For alternative teacher compensation aid under Minnesota Statutes, section 122A.415, subdivision 4:

$ deleted text begin 78,331,000 deleted text end
new text begin 78,907,000 new text end
..... 2016
$ deleted text begin 87,147,000 deleted text end
new text begin 89,049,000 new text end
..... 2017

The 2016 appropriation includes $7,766,000 for 2015 and deleted text begin $70,565,000deleted text end new text begin $71,141,000new text end for 2016.

The 2017 appropriation includes deleted text begin $7,840,000deleted text end new text begin $7,876,000new text end for 2016 and deleted text begin $79,307,000deleted text end new text begin $81,173,000new text end for 2017.

Sec. 45.

Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 3, is amended to read:

Subd. 3.

Achievement and integration aid.

For achievement and integration aid under Minnesota Statutes, section 124D.862:

$ deleted text begin 65,539,000 deleted text end
new text begin 65,439,000 new text end
..... 2016
$ deleted text begin 68,745,000 deleted text end
new text begin 69,372,000 new text end
..... 2017

The 2016 appropriation includes $6,382,000 for 2015 and deleted text begin $59,157,000deleted text end new text begin $59,057,000new text end for 2016.

The 2017 appropriation includes deleted text begin $6,573,000deleted text end new text begin $6,561,000new text end for 2016 and deleted text begin $62,172,000deleted text end new text begin $62,811,000new text end for 2017.

Sec. 46.

Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 6, is amended to read:

Subd. 6.

Reading Corps.

For grants to ServeMinnesota for the Minnesota Reading Corps under Minnesota Statutes, section 124D.42, subdivision 8:

$ 6,125,000 ..... 2016
$ deleted text begin 6,125,000 deleted text end
new text begin 7,125,000 new text end
..... 2017

Any balance deleted text begin in the first year does not cancel butdeleted text end is available deleted text begin in the second year.deleted text end new text begin until June 30, 2019. The base appropriation for fiscal year 2018 and later years is $5,625,000.new text end

Sec. 47.

Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 12, is amended to read:

Subd. 12.

Collaborative urban educator.

For the collaborative urban educator grant program:

$ 780,000 ..... 2016
$ deleted text begin 780,000 deleted text end
new text begin 1,090,000 new text end
..... 2017

Grants shall be awarded in equal amounts: deleted text begin $195,000deleted text end new text begin $272,500 new text end each year is for the Southeast Asian teacher program at Concordia University, St. Paul; deleted text begin $195,000deleted text end new text begin $272,500 new text end each year is for the collaborative urban educator program at the University of St. Thomas; deleted text begin $195,000deleted text end new text begin $272,500 new text end each year is for the Center for Excellence in Urban Teaching at Hamline University; and deleted text begin $195,00deleted text end new text begin $272,500 new text end each year is for the East Africa Student to Teacher program at Augsburg College.

Any balance in the first year does not cancel but is available in the second year.

Each institution shall prepare for the legislature, by January 15 of each year, a detailed report regarding the funds used. The report must include the number of teachers prepared as well as the diversity for each cohort of teachers produced. new text begin The report must also include the graduation rate for each cohort of teacher candidates, the placement rate for each graduating cohort of teacher candidates, and the retention rate for each graduating cohort of teacher candidates, among other program outcomes.new text end

new text begin The base appropriation for fiscal year 2018 and later is $780,000. Grants shall be awarded in equal amounts: $195,000 each year is for the Southeast Asian teacher program at Concordia University, St. Paul; $195,000 each year is for the collaborative urban educator program at the University of St. Thomas; $195,000 each year is for the Center for Excellence in Urban Teaching at Hamline University; and $195,000 each year is for the East Africa Student to Teacher program at Augsburg College. new text end

Sec. 48.

Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 15, is amended to read:

Subd. 15.

Museums and Education Centers.

For grants to museums and education centers:

$ 351,000 ..... 2016
$ deleted text begin 351,000 deleted text end
new text begin 401,000 new text end
..... 2017

(a) $260,000 each year is for the Minnesota Children's Museum.

(b) $50,000 each year is for the Duluth Children's Museum.

(c) $41,000 each year is for the Minnesota Academy of Science.

new text begin (d) $50,000 in fiscal year 2017 and later is for the Headwaters Science Center for hands-on science, technology, engineering, and math (STEM) education. new text end

Any balance in the first year does not cancel but is available in the second year.new text begin The base in fiscal year 2018 is $401,000.new text end

Sec. 49.

Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 19, is amended to read:

Subd. 19.

Full-service community schools.

For full-service community schools under Minnesota Statutes, section 124D.231:

$ 250,000 ..... 2016
$ deleted text begin 250,000 deleted text end
new text begin 1,250,000 new text end
..... 2017

This is a onetime appropriation. new text begin Up to $50,000 each year is for administration of this program. new text end Any balance in the first year does not cancel but is available in the second year.new text begin The base appropriation for fiscal year 2018 is $0.new text end

Sec. 50.

Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 21, is amended to read:

Subd. 21.

American Indian teacher preparation grants.

For joint grants to assist American Indian people to become teachers under Minnesota Statutes, section 122A.63:

$ 190,000 ..... 2016
$ deleted text begin 190,000 deleted text end new text begin new text end new text begin 460,000 new text end ..... 2017

Sec. 51.

Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 24, is amended to read:

Subd. 24.

Race 2 Reduce.

For grants to support expanded Race 2 Reduce water conservation programming in Minnesota schools:

$ 81,000 ..... 2016
$ deleted text begin 69,000 deleted text end
new text begin 219,000 new text end
..... 2017

In the first year, $28,000 is for H2O for Life; $38,000 is for Independent School District No. 624, White Bear Lake; and $15,000 is for Independent School District No. 832, Mahtomedi. In the second year, deleted text begin $32,000deleted text end new text begin $102,000new text end is for H2O for Life; deleted text begin $22,000deleted text end new text begin $70,000new text end is for Independent School District No. 624, White Bear Lake; and deleted text begin $15,000deleted text end new text begin $47,000new text end is for Independent School District No. 832, Mahtomedi.

Any balance in the first year does not cancel but is available in the second year. The base appropriation for fiscal year 2018 and later is deleted text begin $0deleted text end new text begin $307,000, and the commissioner shall proportionately increase the grant amount to each recipientnew text end .

Sec. 52.

Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 26, is amended to read:

Subd. 26.

Education partnership pilots.

new text begin (a) new text end For education partnership pilot grants:

$ 501,000 ..... 2016
$ deleted text begin 501,000 deleted text end
new text begin 531,000 new text end
..... 2017

new text begin (b) new text end Of this amount, $167,000 new text begin in fiscal year 2016 and $177,000 new text end in deleted text begin eachdeleted text end new text begin fiscalnew text end year new text begin 2017new text end is for the Northfield Healthy Community Initiative for a pilot site in Northfield; $167,000new text begin in fiscal year 2016 and $177,000new text end in deleted text begin eachdeleted text end new text begin fiscalnew text end year new text begin 2017 new text end is for the Jones Family Foundation for a pilot site in Red Wing; and $167,000new text begin in fiscal year 2016 and $177,000new text end in deleted text begin eachdeleted text end new text begin fiscalnew text end yearnew text begin 2017new text end is for Independent School District No. 742, St. Cloud, for a pilot site in St. Cloud. Each partnership pilot program shall support community collaborations focused on academic achievement and youth development, use a comprehensive and data-driven approach to increase student success, and measure outcomes, such as kindergarten readiness, reading proficiency at third grade, high school graduation, and college and career readiness. By February 15, 2016,new text begin and by February 15 of every subsequent even-numbered year,new text end each partnership pilot grant recipient shall submit to the chairs and ranking minority members of the legislative committees with primary jurisdiction over kindergarten through grade 12 education a report describing the activities funded by the grant, changes in outcome measures attributable to the grant-funded activities, and the recipient's program plan for the following year.

deleted text begin This is a onetime appropriation. deleted text end

new text begin (c) The base for this program is $0 for fiscal year 2018. new text end

new text begin (d) new text end Any balance from the first year may carry forward into the second year.

Sec. 53.

Laws 2015, First Special Session chapter 3, article 10, section 3, subdivision 6, is amended to read:

Subd. 6.

Northside Achievement Zone.

For a grant to the Northside Achievement Zone:

$ 1,200,000 ..... 2016
$ deleted text begin 1,200,000 deleted text end
new text begin 1,210,000 new text end
..... 2017

Funds appropriated in this section are to reduce multigenerational poverty and the educational achievement gap through increased enrollment of families within the zone, and may be used for Northside Achievement Zone programming and services consistent with federal Promise Neighborhood program agreements and requirements.

new text begin The base for this program is $1,200,000 for fiscal year 2018 and later. new text end

Sec. 54.

Laws 2015, First Special Session chapter 3, article 10, section 3, subdivision 7, is amended to read:

Subd. 7.

St. Paul Promise Neighborhood.

For a grant to the St. Paul Promise Neighborhood:

$ 1,200,000 ..... 2016
$ deleted text begin 1,200,000 deleted text end
new text begin 1,210,000 new text end
..... 2017

Funds appropriated in this section are to reduce multigenerational poverty and the educational achievement gap through increased enrollment of families within the zone, and may be used for St. Paul Promise Neighborhood programming and services consistent with federal Promise Neighborhood program agreements and requirements.

new text begin The base for this program is $1,200,000 for fiscal year 2018 and later. new text end

Sec. 55.

new text begin AGRICULTURAL EDUCATOR GRANTS. new text end

new text begin Subdivision 1. new text end

new text begin Grant program established. new text end

new text begin A grant program is established to support school districts in paying agricultural education teachers for work over the summer with high school students in extended projects. new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin The commissioner of education shall develop the form and method for applying for the grants. The commissioner shall develop criteria for determining the allocation of the grants, including appropriate goals for the use of the grants. new text end

new text begin Subd. 3. new text end

new text begin Grant awards. new text end

new text begin Grant funding under this section must be matched by funding from the school district for the agricultural education teacher's summer employment. Grant funding for each teacher is limited to the one-half share of 40 working days. new text end

new text begin Subd. 4. new text end

new text begin Reports. new text end

new text begin School districts that receive grant funds shall report to the commissioner of education no later than December 31 of each year regarding the number of teachers funded by the grant program and the outcomes compared to the goals established in the grant application. The Department of Education shall develop the criteria necessary for the reports. new text end

Sec. 56.

new text begin SUPPORT OUR STUDENTS GRANT PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, the following terms have the meanings given them: new text end

new text begin (1) "student support services personnel" includes individuals licensed to serve as a school counselor, school psychologist, school social worker, school nurse, or chemical dependency counselor in Minnesota; and new text end

new text begin (2) "new position" means a student support services personnel full-time or part-time position not under contract by a school at the start of the 2015-2016 school year. new text end

new text begin Subd. 2. new text end

new text begin Purpose. new text end

new text begin The purpose of the support our students grant program is to: new text end

new text begin (1) address shortages of student support services personnel within Minnesota schools; new text end

new text begin (2) decrease caseloads for existing student support services personnel to ensure effective services; new text end

new text begin (3) ensure that students receive effective academic guidance and integrated and comprehensive services to improve kindergarten through grade 12 school outcomes and career and college readiness; new text end

new text begin (4) ensure that student support services personnel serve within the scope and practice of their training and licensure; new text end

new text begin (5) fully integrate learning supports, instruction, and school management within a comprehensive approach that facilitates interdisciplinary collaboration; and new text end

new text begin (6) improve school safety and school climate to support academic success and career and college readiness. new text end

new text begin Subd. 3. new text end

new text begin Grant eligibility and application. new text end

new text begin (a) A school district, charter school, intermediate school district, or other cooperative unit is eligible to apply for a six-year matching grant under this section. new text end

new text begin (b) The commissioner of education shall specify the form and manner of the grant application. In awarding grants, the commissioner must give priority to schools in which student support services personnel positions do not currently exist. To the extent practicable, the commissioner must award grants equally between applicants in metro counties and nonmetro counties. Additional criteria must include at least the following: new text end

new text begin (1) existing student support services personnel caseloads; new text end

new text begin (2) school demographics; new text end

new text begin (3) Title I revenue; new text end

new text begin (4) Minnesota student survey data; new text end

new text begin (5) graduation rates; and new text end

new text begin (6) postsecondary completion rates. new text end

new text begin Subd. 4. new text end

new text begin Allowed uses; match requirements. new text end

new text begin A grant under this section must be used to hire a new position. A school that receives a grant must match the grant with local funds in each year of the grant. In each of the first four years of the grant, the local match equals $1 for every $1 awarded in the same year. In years five and six of the grant, the local match equals $3 for every $1 awarded in the same year. The local match may not include federal reimbursements attributable to the new position. new text end

new text begin Subd. 5. new text end

new text begin Report required. new text end

new text begin By February 1 following any fiscal year in which it received a grant, a school must submit a written report to the commissioner indicating how the new positions affected two or more of the following measures: new text end

new text begin (1) school climate; new text end

new text begin (2) attendance rates; new text end

new text begin (3) academic achievement; new text end

new text begin (4) career and college readiness; and new text end

new text begin (5) postsecondary completion rates. new text end

Sec. 57.

new text begin STUDENT DISCIPLINE WORKING GROUP. new text end

new text begin (a) A Student Discipline Working Group is created to review the substance, application, and effect of Minnesota's Pupil Fair Dismissal Act under Minnesota Statutes, sections 121A.40 to 121A.56, and related student discipline provisions in Minnesota Statutes, chapter 121A, and submit written recommendations to the chairs and ranking minority members of the committees in the house of representatives and the senate with jurisdiction over education by February 1, 2017, on improving disciplinary policies, practices, and procedures as they affect students and school officials and the effects on student outcomes. new text end

new text begin (b) Consistent with paragraph (a), the working group must analyze: new text end

new text begin (1) available summary data on elementary and secondary students' removal from class, suspensions, exclusions, and expulsions, disaggregated by categories of race, ethnicity, poverty, disabilities, homelessness, English language proficiency, gender, age, and foster care status; new text end

new text begin (2) the meaning and effect of "willful" in establishing grounds for dismissal under Minnesota Statutes, section 121A.45; new text end

new text begin (3) the impact of student misconduct on teacher safety; new text end

new text begin (4) district and school policies and standards to ensure minority students and English learners are not disproportionately determined eligible for special education services, dismissed from school or otherwise disciplined, placed in settings other than regular education classrooms, or dissuaded or otherwise prevented from taking rigorous or challenging courses; new text end

new text begin (5) the impact of established policies and due process procedures on teacher safety and student outcomes; new text end

new text begin (6) students' need for and access to professional support service providers such as school counselors, school social workers, school psychologists, and mental health professionals; new text end

new text begin (7) the presence of school resource officers in school buildings, their role in effecting student discipline, and their impact on teacher safety and student outcomes; new text end

new text begin (8) policies for retaining and destroying student disciplinary data; new text end

new text begin (9) best practices for school discipline; and new text end

new text begin (10) other related school discipline matters that are of concern to working group members. new text end

new text begin (c) The working group consists of 21 members. By June 1, 2016, the executive director of each of the following organizations shall appoint one representative of that organization to serve as a member of the working group: the Minnesota School Boards Association; the Minnesota Association of School Administrators; Education Minnesota; the Minnesota Board of Peace Officer Standards and Training; the Minnesota Disability Law Center; the National Alliance of Mental Illness Minnesota; the Minnesota Association of Secondary School Principals; the Minnesota Elementary School Principals' Association; the Association of Metropolitan School Districts; the Minnesota Rural Education Association; the Minnesota School Counselors Association; the Minnesota School Psychologists Association; the Parent Advocacy Coalition for Educational Rights; Minnesota Administrators for Special Education; Schools for Equity in Education; Minnesota Education Equity Partnership; Educators for Excellence; the School Nurse Organization of Minnesota; the Minnesota Association of Charter Schools; the Minnesota Youth Council; the Minnesota School Social Workers Association; and the American Federation of State, County, and Municipal Employees (AFSCME). Working group members must seek advice from experts and stakeholders in developing their recommendations. new text end

new text begin (d) The commissioner of education, or the commissioner's designee, must convene the first meeting of the working group. The working group must select a chair or cochairs from among its members at the first meeting. The working group must meet periodically. The commissioner must provide technical and administrative assistance to the working group upon request. Working group members are not eligible to receive expenses or per diem payments for serving on the working group. new text end

new text begin (e) The working group expires February 2, 2017. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 58.

new text begin NORTHWEST REGIONAL PARTNERSHIP CONCURRENT ENROLLMENT PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin "Northwest Regional Partnership" means a voluntary association of the Lakes Country Service Cooperative, the Northwest Service Cooperative, and Minnesota State University-Moorhead that works together to provide coordinated higher learning opportunities for teachers. new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin Lakes Country Service Cooperative, in consultation with the Northwest Service Cooperative, may develop a continuing education program to allow eligible teachers to attain the requisite graduate credits necessary to be qualified to teach secondary school courses for postsecondary credit. new text end

new text begin Subd. 3. new text end

new text begin Curriculum development. new text end

new text begin Minnesota State University-Moorhead may develop an online education curriculum to allow eligible secondary school teachers to attain graduate credit at a reduced credit rate. new text end

new text begin Subd. 4. new text end

new text begin Funding for course development; scholarships; stipends. new text end

new text begin Lakes Country Service Cooperative, in consultation with the other members of the Northwest Regional Partnership, shall: new text end

new text begin (1) provide funding for course development for up to 18 credits in applicable postsecondary subject areas; new text end

new text begin (2) provide scholarships for eligible teachers to enroll in the continuing education program; and new text end

new text begin (3) develop criteria for awarding educator stipends on a per-credit basis to incentivize participation in the continuing education program. new text end

new text begin Subd. 5. new text end

new text begin Participant eligibility. new text end

new text begin Participation in the continuing education program is reserved for teachers of secondary school courses for postsecondary credit. Priority must be given to teachers employed by a school district that is a member of the Lakes Country Service Cooperative or Northwest Service Cooperative. Teachers employed by a school district that is not a member of the Lakes Country Service Cooperative or Northwest Service Cooperative may participate in the continuing education program as space allows. A teacher participating in this program is ineligible to participate in other concurrent enrollment teacher training grant programs. new text end

new text begin Subd. 6. new text end

new text begin Private funding. new text end

new text begin The partnership may receive private resources to supplement the available public money. All money received shall be administered by the Lakes Country Service Cooperative. new text end

new text begin Subd. 7. new text end

new text begin Report required. new text end

new text begin Northwest Regional Partnership must submit an annual report by January 15 of each year on the progress of its activities to the legislature, commissioner of education, and Board of Trustees of the Minnesota State Colleges and Universities. The annual report shall contain a financial report for the preceding year. The first report is due no later than January 15, 2018. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 59.

new text begin GRANTS TO STUDENT TEACHERS IN SHORTAGE AREAS. new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of the Office of Higher Education must establish a grant program for student teaching stipends for low-income students enrolled in a Board of Teaching-approved teacher preparation program who are interested in teaching in a high needs subject area or region after graduating and receiving their teaching license. For purposes of this section, "high needs subject area or region" means a shortage of teachers teaching in particular subject areas or a shortage of teachers teaching in particular regions of the state identified in the commissioner of education's biennial survey of districts under Minnesota Statutes, section 127A.05, subdivision 6, or in another Department of Education survey on teacher shortages. new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin To be eligible for a grant under this section, a teacher candidate must: new text end

new text begin (1) be enrolled in a Board of Teaching-approved teacher preparation program that requires at least 12 weeks of student teaching and results in the teacher candidate receiving a full professional teaching license enabling the licensee to teach in a high needs subject area or region; and new text end

new text begin (2) demonstrate financial need based on criteria established by the commissioner under subdivision 3. new text end

new text begin Subd. 3. new text end

new text begin Administration; repayment. new text end

new text begin (a) The commissioner must establish an application process and other guidelines for implementing this program. new text end

new text begin (b) The commissioner must determine each academic year the stipend amount based on the amount of available funding and the number of eligible applicants. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 60.

new text begin MINNESOTA COMPREHENSIVE ASSESSMENT COLLEGE READY BENCHMARKS; MINNESOTA STATE COLLEGES AND UNIVERSITIES PARTICIPATION. new text end

new text begin The chancellor of the Minnesota State Colleges and Universities must approve or reject the empirically derived benchmarks for the high school Minnesota Comprehensive Assessments established by the commissioner of education under Minnesota Statutes, section 120B.30, subdivision 1, paragraph (m), no later than December 31, 2016. The chancellor's approval or rejection must be made in writing to the commissioner and, if the benchmarks are rejected, must describe the reasons for rejection and suggest appropriate revisions. If the chancellor rejects the benchmarks, the commissioner must establish revised benchmarks. The revised benchmarks must incorporate the chancellor's suggested revisions. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. If the established benchmarks are approved by the chancellor, the benchmarks must be effective for the 2016-2017 school year, if practicable, but no later than the 2017-2018 school year. If revised benchmarks are required, the benchmarks must be established and made effective no later than the 2018-2019 school year. new text end

Sec. 61.

new text begin CERTIFICATION INCENTIVE REVENUE. new text end

new text begin Subdivision 1. new text end

new text begin Qualifying certificates. new text end

new text begin As soon as practicable, the commissioner of education, in consultation with the Governor's Workforce Development Council established under Minnesota Statutes, section 116L.665, and the P-20 education partnership operating under Minnesota Statutes, section 127A.70, must establish the list of qualifying career and technical certificates and post the names of those certificates on the Department of Education's Web site. The certificates must be in fields where occupational opportunities exist. new text end

new text begin Subd. 2. new text end

new text begin School district participation. new text end

new text begin (a) A school board may adopt a policy authorizing its students in grades 9 through 12, including its students enrolled in postsecondary enrollment options courses under Minnesota Statutes, section 124D.09, the opportunity to complete a qualifying certificate. The certificate may be completed as part of a regularly scheduled course. new text end

new text begin (b) A school district may register a student for any assessment necessary to complete a qualifying certificate and pay any associated registration fees for its students. new text end

new text begin Subd. 3. new text end

new text begin Incentive funding. new text end

new text begin (a) A school district's career and technical certification aid equals $500 times the district's number of students enrolled during the current fiscal year who have obtained one or more qualifying certificates during the current fiscal year. new text end

new text begin (b) The statewide total certificate revenue must not exceed $1,000,000. The commissioner must proportionately reduce the initial aid provided under this subdivision so that the statewide aid cap is not exceeded. new text end

new text begin Subd. 4. new text end

new text begin Reports to the legislature. new text end

new text begin (a) The commissioner of education must report to the committees of the legislature with jurisdiction over kindergarten through grade 12 education and higher education by February 1, 2017, on the number and types of certificates authorized for the 2016-2017 school year. The commissioner must also recommend whether the pilot program should be continued. new text end

new text begin (b) By February 1, 2018, the commissioner of education must report to the committees of the legislature with jurisdiction over kindergarten through grade 12 education and higher education about the number and types of certificates earned by Minnesota's students during the 2016-2017 school year. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 62.

new text begin APPROPRIATIONS. new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are appropriated from the general fund to the Department of Education for the fiscal years designated. new text end

new text begin Subd. 2. new text end

new text begin Staff development grants for cooperative units. new text end

new text begin For payment of staff development grants to intermediate school districts and other cooperative units providing instruction to students in federal instructional settings of level 4 or higher: new text end

new text begin $ new text end new text begin 4,500,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin This is a onetime appropriation. This appropriation is available until June 30, 2019. To the extent practicable, this appropriation should fund staff development grants for intermediate school districts and other cooperative units for fiscal years 2017, 2018, and 2019. new text end

new text begin Subd. 3. new text end

new text begin Support our students grants. new text end

new text begin For support our students grants: new text end

new text begin $ new text end new text begin 12,133,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin This is a onetime appropriation. new text end

new text begin Notwithstanding Minnesota Statutes, section 16A.28, this appropriation is available until June 30, 2022. The commissioner may not allot more than $2,407,000 of this appropriation before July 1, 2017. Up to $100,000 of this appropriation may be retained by the commissioner for administration of the grant program. Any balance remaining after June 30, 2022, shall cancel to the general fund. new text end

new text begin Subd. 4. new text end

new text begin Northwest Regional Partnership concurrent enrollment program. new text end

new text begin For a grant to the Lakes Country Service Cooperative to operate a continuing education program: new text end

new text begin $ new text end new text begin 3,000,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin This is a onetime appropriation. This appropriation is available until June 30, 2019. new text end

new text begin Subd. 5. new text end

new text begin Paraprofessional pathway to teacher licensure. new text end

new text begin For grants to school districts for Grow Your Own new teacher programs: new text end

new text begin $ new text end new text begin 1,500,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin The grants are for a first class city school district or any other school district with more than 40 percent minority students to provide tuition scholarships or stipends to eligible employees for a nonconventional teacher residency pilot program established under Minnesota Statutes, section 122A.09, subdivision 10, paragraph (a). The program shall provide tuition scholarships or stipends to enable education or teaching assistants or other nonlicensed employees of a first class city school district or any other school district with more than 40 percent minority students who hold a bachelor's degree from an accredited college or university and who seek an education license to participate in a Board of Teaching-approved nonconventional teacher residency program under Minnesota Statutes, section 122A.09, subdivision 10, paragraph (a). Any funds not awarded by June 1, 2017, may be reallocated among the remaining districts if the total cost of the program exceeds the original allocation. The base in fiscal year 2018 is $1,000,000. new text end

new text begin Subd. 6. new text end

new text begin Sanneh Foundation. new text end

new text begin For a grant to the Sanneh Foundation: new text end

new text begin $ new text end new text begin 1,500,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin Funds appropriated in this section are to provide all-day, in-school, and after-school academic and behavioral interventions for low-performing and chronically absent students with a focus on low-income students and students of color throughout the school year and during the summer to decrease absenteeism, encourage school engagement, and improve grades and graduation rates. Funds appropriated in this section may be used to hire and train staff in areas of youth mentorship, behavior support, and academic tutoring in group and individual settings and to promote pathways for teachers of color. new text end

new text begin This is a onetime appropriation. This appropriation is available until June 30, 2019. new text end

new text begin Subd. 7. new text end

new text begin Education Innovation Partners Cooperative Center. new text end

new text begin For a matching grant to Education Innovation Partners Cooperative Center, No. 6091-50, to provide research-based professional development services, on-site training, and leadership coaching to teachers and other school staff: new text end

new text begin $ new text end new text begin 500,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin A grant under this subdivision must be matched with money or in-kind contributions from nonstate sources. This is a onetime appropriation. new text end

new text begin Subd. 8. new text end

new text begin Western Minnesota mobile manufacturing lab. new text end

new text begin For a transfer to the Pine to Prairie Cooperative Center: new text end

new text begin $ new text end new text begin 900,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin The funds in this subdivision must be used to establish a western Minnesota mobile labs program, including manufacturing and welding labs to create interest in these careers for secondary students. The program must be operated by Pine to Prairie Cooperative Center in collaboration with Northland Community and Technical College, Lakes Country Service Cooperative, and Minnesota State Community and Technical College. new text end

new text begin This is a onetime appropriation. This appropriation is available until June 30, 2019. new text end

new text begin Subd. 9. new text end

new text begin Teacher-governed school grants. new text end

new text begin For grants to teacher-governed schools under Minnesota Statutes, section 123B.045: new text end

new text begin $ new text end new text begin 500,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin This is a onetime appropriation. new text end

new text begin Subd. 10. new text end

new text begin Girls in Action grant. new text end

new text begin For a grant to the Girls in Action program to enable Girls in Action to continue to provide and to expand Twin Cities metropolitan area school and community-based programs that encourage and support low-income girls, including low-income girls of color, to graduate from high school on time, complete a postsecondary preparation program, become community leaders, and participate in service learning opportunities in their communities. Girls in Action must expend $500,000 of this appropriation for community-based programs located in the Twin Cities metropolitan area: new text end

new text begin $ new text end new text begin 1,500,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin This is a onetime appropriation. This appropriation is available until June 30, 2019. new text end

new text begin Subd. 11. new text end

new text begin Student teachers in shortage areas. new text end

new text begin For transfer to the commissioner of the Office of Higher Education for the purpose of providing grants to student teachers in shortage areas under Minnesota Statutes, section 136A.1275: new text end

new text begin $ new text end new text begin 2,800,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin This is a onetime appropriation. This appropriation is available until June 30, 2019. new text end

new text begin Subd. 12. new text end

new text begin Minnesota Council on Economic Education. new text end

new text begin For a grant to the Minnesota Council on Economic Education to provide staff development to teachers for implementing the state graduation standards in learning areas relating to economic education: new text end

new text begin $ new text end new text begin 250,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin The commissioner, in consultation with the council, shall develop expectations for staff development outcomes, eligibility criteria for participants, an evaluation procedure, and guidelines for direct and in-kind contributions by the council. new text end

new text begin This is a onetime appropriation. This appropriation is available until June 30, 2019. new text end

new text begin Subd. 13. new text end

new text begin Singing-based pilot program to improve student reading. new text end

new text begin (a) For a grant to pilot a research-supported, computer-based educational program that uses singing to improve the reading ability of students in grades 3 through 5: new text end

new text begin $ new text end new text begin 100,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin (b) The commissioner of education shall award a grant to the Rock 'n' Read Project to implement in at least three Minnesota school districts, charter schools, or school sites, a research-supported, computer-based educational program that uses singing to improve the reading ability of students in grades 3 through 5. The grantee shall be responsible for selecting participating school sites; providing any required hardware and software, including software licenses, for the duration of the grant period; providing technical support, training, and staff to install required project hardware and software; providing on-site professional development and instructional monitoring and support for school staff and students; administering pre- and post-intervention reading assessments; evaluating the impact of the intervention; and other project management services as required. To the extent practicable, the grantee must select participating schools in urban, suburban, and greater Minnesota, and give priority to schools in which a high proportion of students do not read proficiently at grade level and are eligible for free or reduced-price lunch. new text end

new text begin (c) By February 15, 2017, the grantee must submit a report detailing expenditures and outcomes of the grant to the commissioner of education and the chairs and ranking minority members of the legislative committees with primary jurisdiction over kindergarten through grade 12 education policy and finance. new text end

new text begin (d) This is a onetime appropriation. new text end

new text begin Subd. 14. new text end

new text begin Agricultural educator grants. new text end

new text begin For agricultural educator grants: new text end

new text begin $ new text end new text begin 250,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin This is a onetime appropriation. This appropriation is available until June 30, 2019. new text end

new text begin Subd. 15. new text end

new text begin Certificate incentive funding. new text end

new text begin For the certificate incentive program: new text end

new text begin $ new text end new text begin 1,000,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin This is a onetime appropriation. This appropriation is available until June 30, 2019. new text end

new text begin Subd. 16. new text end

new text begin Grants for vision therapy pilot project. new text end

new text begin (a) For a grant to Independent School District No. 12, Centennial, to implement a neuro-optometric vision therapy pilot project: new text end

new text begin $ new text end new text begin 200,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin This is a onetime appropriation and is available until June 30, 2019. new text end

new text begin (b) In each year of the pilot project, second and third grade students identified by a set of criteria created by the district shall be admitted into the pilot study. Identified students shall have a comprehensive eye examination with written standard requirements of testing. Students identified with a diagnosis of convergence insufficiency must undergo a vision efficiency evaluation by a licensed optometrist or ophthalmologist trained in the evaluation of learning-related vision problems. The results of this examination shall determine whether a student will qualify for neuro-optometric vision therapy funded by the grant. The parent or guardian of a student who qualifies for the pilot program under this paragraph may submit a written notification to the school opting the student out of the program. The district must establish guidelines to provide quality standards and measures to ensure an appropriate diagnosis and treatment plan that is consistent with the convergence insufficiency treatment trial study. new text end

new text begin (c) The commissioner of education must provide for an evaluation of the pilot project and make a report to the legislative committees with jurisdiction over kindergarten through grade 12 education policy and finance by January 15, 2020. new text end

new text begin Subd. 17. new text end

new text begin Southwest Minnesota State University special education teacher education program. new text end

new text begin For the Southwest Minnesota State University special education teacher education program to support Minnesota resident special education paraprofessionals working toward licensure in an online program: new text end

new text begin $ new text end new text begin 385,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin The base for this program in fiscal year 2018 is $0. new text end

new text begin Subd. 18. new text end

new text begin Student success grant. new text end

new text begin For a grant to Independent School District No. 272, Eden Prairie, for career and college readiness coordination, counseling, academic support for middle and high school students, and summer activities and before and after school tutoring programs: new text end

new text begin $ new text end new text begin 500,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin This is a onetime appropriation. This appropriation is available until June 30, 2019. new text end

Sec. 63.

new text begin REPEALER. new text end

new text begin (a) new text end new text begin Minnesota Statutes 2014, sections 122A.413, subdivision 3; and 122A.43, subdivision 6, new text end new text begin are repealed. new text end

new text begin (b) new text end new text begin Minnesota Statutes 2015 Supplement, section 122A.413, subdivisions 1 and 2, new text end new text begin are repealed. new text end

ARTICLE 26

CHARTER SCHOOL RECODIFICATION

Section 1.

Minnesota Statutes 2015 Supplement, section 124E.01, is amended to read:

124E.01 PURPOSE AND APPLICABILITY.

Subdivision 1.

Purposes.

The primary purpose of deleted text begin this chapterdeleted text end new text begin charter schoolsnew text end is to improve all pupil learning and all student achievement. Additional purposes include to:

(1) increase learning opportunities for all pupils;

(2) encourage the use of different and innovative teaching methods;

(3) measure learning outcomes and create different and innovative forms of measuring outcomes;

(4) establish new forms of accountability for schools; or

(5) create new professional opportunities for teachers, including the opportunity to be responsible for the learning program at the school site.

Subd. 2.

Applicability.

This chapter applies only to charter schools formed and operated under this chapter.

Sec. 2.

Minnesota Statutes 2015 Supplement, section 124E.02, is amended to read:

124E.02 DEFINITIONS.

(a) For purposes of this chapter, the terms defined in this deleted text begin paragraphdeleted text end new text begin section new text end have the meanings given them.

deleted text begin "Application" to receive approval as an authorizer means the proposal an eligible authorizer submits to the commissioner under section 124E.05 before that authorizer is able to submit any affidavit to charter to a school. deleted text end

deleted text begin "Application" under section 124E.06 means the charter school business plan a school developer submits to an authorizer for approval to establish a charter school that documents the school developer's mission statement, school purposes, program design, financial plan, governance and management structure, and background and experience, plus any other information the authorizer requests. The application also shall include a "statement of assurances" of legal compliance prescribed by the commissioner. deleted text end

new text begin (b) new text end "Affidavit" means a written statement the authorizer submits to the commissioner for approval to establish a charter school under section 124E.06new text begin , subdivision 4,new text end attesting to its review and approval process before chartering a school.

deleted text begin (b) For purposes of this chapter: deleted text end

deleted text begin (1) "related party" means an affiliate or immediate relative of the other party in question, an affiliate of an immediate relative, or an immediate relative of an affiliate; deleted text end

deleted text begin (2)deleted text end new text begin (c)new text end "Affiliate" means a person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another persondeleted text begin ;deleted text end new text begin .new text end

new text begin (d) "Control" means the ability to affect the management, operations, or policy actions or decisions of a person, whether by owning voting securities, by contract, or otherwise. new text end

deleted text begin (3)deleted text end new text begin (e)new text end "Immediate family" means an individual whose relationship by blood, marriage, adoption, or deleted text begin partneringdeleted text end new text begin partnershipnew text end is no more remote than first cousindeleted text begin ;deleted text end new text begin .new text end

deleted text begin (4)deleted text end new text begin (f)new text end "Person" means an individual or entity of any kinddeleted text begin ; anddeleted text end new text begin .new text end

deleted text begin (5) "control" means the ability to affect the management, operations, or policy actions or decisions of a person, whether through ownership of voting securities, by contract, or otherwise. deleted text end

new text begin (g) "Related party" means an affiliate or immediate relative of the other interested party, an affiliate of an immediate relative who is the other interested party, or an immediate relative of an affiliate who is the other interested party. new text end

new text begin (h) For purposes of this chapter, the terms defined in section 120A.05 have the same meanings. new text end

Sec. 3.

Minnesota Statutes 2015 Supplement, section 124E.03, is amended to read:

124E.03 APPLICABLE LAW.

Subdivision 1.

Public status; exemption from statutes and rules.

A charter school is a public school and is part of the state's system of public education. A charter school is exempt from all statutes and rules applicable to a school, school board, or school district unless a statute or rule is made specifically applicable to a charter school or is included in this chapter.

Subd. 2.

deleted text begin Generaldeleted text end new text begin Certainnew text end federal, state, and local requirements.

(a) A charter school shall meet all federal, state, and local health and safety requirements applicable to school districts.

(b) A school must comply with statewide accountability requirements governing standards and assessments in chapter 120B.

(c) A charter school deleted text begin is subject to anddeleted text end must comply with the Minnesota Public School Fee Law, sections 123B.34 to 123B.39.

(d) A charter school is a district for the purposes of tort liability under chapter 466.

(e) A charter school deleted text begin is subject todeleted text end new text begin must comply withnew text end the Pledge of Allegiance requirement under section 121A.11, subdivision 3.

(f) A charter school and charter school board of directors deleted text begin are subject todeleted text end new text begin must comply withnew text end chapter 181 new text begin governing requirements for employmentnew text end .

(g) A charter school deleted text begin is subject to anddeleted text end must comply with continuing truant notification under section 260A.03.

(h) A charter school must develop and implement a teacher evaluation and peer review process under section 122A.40, subdivision 8, paragraph (b), clauses (2) to (13). The teacher evaluation process in this paragraph does not create any additional employment rights for teachers.

(i) A charter school must adopt a policy, plan, budget, and process, consistent with section 120B.11, to review curriculum, instruction, and student achievement and strive for the world's best workforce.

Subd. 3.

Pupils with a disability.

A charter school must comply with sections 125A.02, 125A.03 to 125A.24, 125A.65, and 125A.75 and rules relating to the education of pupils with a disability as though it were a district. A charter school enrolling prekindergarten pupils with a disability under section 124E.11, paragraph (h), must comply with sections 125A.259 to 125A.48 and rules relating to the Interagency Early Intervention System as though it were a school district.

Subd. 4.

Students' rights and related law.

(a) A charter school deleted text begin studentdeleted text end must deleted text begin be releaseddeleted text end new text begin release a studentnew text end for religious instruction, consistent with section 120A.22, subdivision 12, clause (3).

(b) A charter school deleted text begin is subject to anddeleted text end must comply with chapter 363A new text begin governing the Minnesota Human Rights Act new text end and section 121A.04new text begin governing student athletics and sex discrimination in schoolsnew text end .

(c) A charter school must comply with section 121A.031 governing policies on deleted text begin prohibited conductdeleted text end new text begin bullyingnew text end .

Subd. 5.

Recordsdeleted text begin , meetings,deleted text end and data requirements.

(a) A charter school must comply with deleted text begin chaptersdeleted text end new text begin chapternew text end 13 deleted text begin and 13Ddeleted text end new text begin governing government datanew text end ; and sections deleted text begin 120A.22, subdivision 7;deleted text end 121A.75deleted text begin ;deleted text end new text begin governing access to juvenile justice records,new text end and 260B.171, subdivisions 3 and 5new text begin , governing juvenile justice recordsnew text end .

(b) A charter school must comply with section 120A.22, subdivision 7, governing the transfer of students' educational records and sections 138.163 and 138.17 governing the management of local records.

new text begin Subd. 5a. new text end

new text begin Open meetings. new text end

new text begin A charter school must comply with chapter 13D governing open meetings. new text end

Subd. 6.

Length of school year.

A charter school must provide instruction each year for at least the number of hours required by section 120A.41. It may provide instruction throughout the year deleted text begin according todeleted text end new text begin undernew text end sections 124D.12 to 124D.127 or 124D.128 new text begin governing learning year programsnew text end .

Subd. 7.

Additional program-specific requirements.

(a) A charter school offering online courses or programs must comply with section 124D.095new text begin governing online learningnew text end .

(b) A charter school that provides early childhood health and developmental screening must comply with sections 121A.16 to 121A.19new text begin governing early childhood screeningnew text end .

(c) A charter school that provides school-sponsored youth athletic activities must comply with section 121A.38new text begin governing policies on concussionsnew text end .

Sec. 4.

Minnesota Statutes 2015 Supplement, section 124E.05, is amended to read:

124E.05 AUTHORIZERS.

Subdivision 1.

Eligible authorizers.

new text begin (a) new text end The deleted text begin followingdeleted text end organizations new text begin in this subdivision new text end may authorize one or more charter schoolsdeleted text begin :deleted text end new text begin .new text end

deleted text begin (1)deleted text end new text begin (b)new text end A school board, intermediate school district school board, or education district organized under sections 123A.15 to 123A.19deleted text begin ;deleted text end new text begin may authorize a charter school.new text end

deleted text begin (2)deleted text end new text begin (c)new text end A charitable organization under section 501(c)(3) of the Internal Revenue Code of 1986deleted text begin , excluding a nonpublic sectarian or religious institution; any person other than a natural person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the nonpublic sectarian or religious institution; and any other charitable organization under this clause that in the federal IRS Form 1023, Part IV, describes activities indicating a religious purpose, that deleted text end new text begin may authorize a charter school, if the organizationnew text end :

deleted text begin (i)deleted text end new text begin (1)new text end is a member of the Minnesota Council of Nonprofits or the Minnesota Council on Foundations;

deleted text begin (ii)deleted text end new text begin (2)new text end is registered with the attorney general's office; deleted text begin anddeleted text end

deleted text begin (iii)deleted text end new text begin (3)new text end is incorporated in the state of Minnesota and has been operating continuously for at least five years but does not operate a charter school;new text begin andnew text end

new text begin (4) is not: new text end

new text begin (i) a nonpublic sectarian or religious institution; new text end

new text begin (ii) any person other than a natural person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the nonpublic sectarian or religious institution; or new text end

new text begin (iii) any other charitable organization under this paragraph that in the federal IRS Form 1023, Part IV, describes activities indicating a religious purpose. new text end

deleted text begin (3)deleted text end new text begin (d)new text end A Minnesota private collegedeleted text begin , notwithstanding clause (2),deleted text end that grants two- or four-year degrees and is registered with the Minnesota Office of Higher Education under chapter 136Adeleted text begin ;deleted text end new text begin may authorize a charter school, notwithstanding paragraph (c).new text end

new text begin (e)new text end deleted text begin community college,deleted text end new text begin Anew text end state new text begin college or new text end universitydeleted text begin , or technical collegedeleted text end governed by the Board of Trustees of the Minnesota State Colleges and Universitiesdeleted text begin ; ordeleted text end new text begin may authorize a charter school.new text end

new text begin (f)new text end The University of Minnesotadeleted text begin ;deleted text end new text begin may authorize a charter school.new text end

deleted text begin (4)deleted text end new text begin (g)new text end A nonprofit corporation subject to chapter 317A, described in section 317A.905deleted text begin ,deleted text end and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code of 1986, may authorize one or more charter schools if the charter school has operated for at least three years under a different authorizer and if the nonprofit corporation has existed for at least 25 yearsdeleted text begin ; ordeleted text end new text begin .new text end

deleted text begin (5)deleted text end new text begin (h) Anew text end single-purpose deleted text begin authorizersdeleted text end new text begin authorizernew text end formed as new text begin a new text end charitable, nonsectarian deleted text begin organizationsdeleted text end new text begin organizationnew text end under section 501(c)(3) of the Internal Revenue Code of 1986 and incorporated in the state of Minnesota under chapter 317A as a corporation with no members or under section 322B.975 as a nonprofit limited liability company for the sole purpose of chartering schoolsnew text begin may authorize a charter schoolnew text end .new text begin An eligible organization interested in being approved as an authorizer under this paragraph must submit a proposal to the commissioner that includes the provisions of subdivision 3 and a five-year financial plan. A single-purpose authorizer under this paragraph shall consider and approve charter school applications using the criteria under section 124E.06 and shall not limit the applications it solicits, considers, or approves to any single curriculum, learning program, or method.new text end

Subd. 2.

Requirements for authorizers.

deleted text begin (a) Eligible organizations interested in being approved as an authorizer under subdivision 1, clause (5), must submit a proposal to the commissioner that includes the provisions of subdivision 3 and a five-year financial plan. Such authorizers shall consider and approve charter school applications using the criteria provided in section 124E.06 and shall not limit the applications it solicits, considers, or approves to any single curriculum, learning program, or method. deleted text end

deleted text begin (b)deleted text end The authorizer must participate in department-approved training.

Subd. 3.

Application process.

(a) An eligible authorizer under this section must apply to the commissioner for approval as an authorizer before submitting any affidavit to the commissioner to charter a school. The application for approval as a charter school authorizer must deleted text begin demonstratedeleted text end new text begin shownew text end the applicant's ability to implement the procedures and satisfy the criteria for chartering a school under this chapter. The commissioner must approve or disapprove deleted text begin andeleted text end new text begin thenew text end application within 45 business days of the deleted text begin application deleted text end deadlinenew text begin for that application periodnew text end . If the commissioner disapproves the application, the commissioner must notify the applicant of the specific deficiencies in writing and the applicant then has 20 business days to address the deficiencies to the commissioner's satisfaction. After the 20 business days expire, the commissioner has 15 business days to make a final decision to approve or disapprove the application. Failing to address the deficiencies to the commissioner's satisfaction makes an applicant ineligible to be an authorizer. The commissioner, in establishing criteria deleted text begin for approvaldeleted text end new text begin to approve an authorizer, consistent with subdivision 4new text end , must consider the applicant's:

(1) deleted text begin capacity anddeleted text end infrastructurenew text begin and capacity to serve as an authorizernew text end ;

(2) application criteria and process;

(3) contracting process;

(4) ongoing oversight and evaluation processes; and

(5) renewal criteria and processes.

(b) A disapproved applicant under this section may resubmit an application during a future application period.

Subd. 4.

Application content.

new text begin To be approved as an authorizer, new text end an applicant must include in its application to the commissioner deleted text begin to be an approved authorizerdeleted text end at least the following:

(1) how new text begin the organization carries out its mission by new text end chartering schools deleted text begin is a way for the organization to carry out its missiondeleted text end ;

(2) deleted text begin a description of the capacity of the organizationdeleted text end new text begin the organization's capacitynew text end to serve as an authorizer, including the personnel who deleted text begin willdeleted text end perform the authorizing duties, their qualifications, the amount of time they deleted text begin will bedeleted text end new text begin arenew text end assigned deleted text begin todeleted text end this responsibility, and the financial resources deleted text begin allocated bydeleted text end the organization new text begin allocates new text end to this responsibility;

(3) deleted text begin a description ofdeleted text end the application and review process the authorizer deleted text begin will usedeleted text end new text begin usesnew text end to deleted text begin make decisions regarding the granting ofdeleted text end new text begin decide whether to grantnew text end charters;

(4) deleted text begin a description ofdeleted text end the type of contract it deleted text begin will arrangedeleted text end new text begin arrangesnew text end with the schools it charters deleted text begin that meetsdeleted text end new text begin to meetnew text end the provisions of section 124E.10;

(5) the process deleted text begin to be useddeleted text end for deleted text begin providing ongoing oversight ofdeleted text end new text begin overseeingnew text end the schoolnew text begin , new text end consistent with deleted text begin the contract expectations specified indeleted text end clause (4) deleted text begin that assuresdeleted text end new text begin , to ensurenew text end that the schools chartered deleted text begin are complyingdeleted text end new text begin complynew text end with deleted text begin both the provisions ofdeleted text end applicable law and rulesdeleted text begin ,deleted text end and deleted text begin withdeleted text end the contract;

(6) deleted text begin a description ofdeleted text end the criteria and process the authorizer deleted text begin will usedeleted text end new text begin usesnew text end to deleted text begin grant expandeddeleted text end new text begin approvenew text end applications new text begin adding grades or sites new text end under section 124E.06, subdivision 5;

(7) the process for deleted text begin making decisions regarding the renewal or termination ofdeleted text end new text begin renewing or terminatingnew text end the school's charter based on evidence deleted text begin that demonstratesdeleted text end new text begin showingnew text end the academic, organizational, and financial competency of the school, including its success in increasing student achievement and meeting the goals of the charter school agreement; and

(8) an assurance specifying that the organization is committed to serving as an authorizer for the full five-year term.

Subd. 5.

Review by commissioner.

The commissioner shall review an authorizer's performance every five years in a manner and form determined by the commissioner and may review an authorizer's performance more frequently at the commissioner's own initiative or at the request of a charter school operator, charter school board member, or other interested party. The commissioner, after completing the review, shall transmit a report with findings to the authorizer.

Subd. 6.

Corrective action.

(a) If, consistent with this chapter, the commissioner finds that an authorizer has not deleted text begin fulfilleddeleted text end new text begin metnew text end the requirements of this chapter, the commissioner may subject the authorizer to corrective action, which may include terminating the contract with the charter school board of directors of a school it chartered. The commissioner must notify the authorizer in writing of any findings that may subject the authorizer to corrective action and the authorizer then has 15 business days to request an informal hearing before the commissioner takes corrective action. If the commissioner terminates a contract between an authorizer and a charter school under this paragraph, the commissioner may assist the charter school in acquiring a new authorizer.

(b) The commissioner may at any time take corrective action against an authorizer, including terminating an authorizer's ability to charter a school for:

(1) failing to demonstrate the criteria under subdivision deleted text begin 4deleted text end new text begin 3new text end under which the commissioner approved the authorizer;

(2) violating a term of the chartering contract between the authorizer and the charter school board of directors;

(3) unsatisfactory performance as an approved authorizer; or

(4) any good cause shown that deleted text begin providesdeleted text end new text begin givesnew text end the commissioner a legally sufficient reason to take corrective action against an authorizer.

Subd. 7.

Withdrawal.

If the governing board of an approved authorizer votes to withdraw as an approved authorizer for a reason unrelated to any cause under section 124E.10, subdivision 4, the authorizer must notify all its chartered schools and the commissioner in writing by July 15 of its intent to withdraw as an authorizer on June 30 in the next calendar year, regardless of when the authorizer's five-year term of approval ends. The commissioner may approve the transfer of a charter school to a new authorizer deleted text begin under this subdivisiondeleted text end after the new authorizer submits an affidavit to the commissioner.

Subd. 8.

Reports.

By September 30 of each year, an authorizer shall submit to the commissioner a statement of income and expenditures related to chartering activities during the previous school year ending June 30. deleted text begin A copy of the statement shall be given to all schools chartered by the authorizer.deleted text end new text begin The authorizer must transmit a copy of the statement to all schools it charters.new text end

Sec. 5.

Minnesota Statutes 2015 Supplement, section 124E.06, is amended to read:

124E.06 FORMING A SCHOOL.

Subdivision 1.

Individuals eligible to organize.

(a) An authorizer, after receiving an application from a new text begin charter new text end school developer, may charter new text begin either new text end a licensed teacher under section 122A.18, subdivision 1, or a group of individuals that includes one or more licensed teachers under section 122A.18, subdivision 1, to operate a school subject to the commissioner's approval of the authorizer's affidavit under subdivision 4.

new text begin (b) "Application" under this section means the charter school business plan a charter school developer submits to an authorizer for approval to establish a charter school. This application must include: new text end

new text begin (1) the school developer's: new text end

new text begin (i) mission statement; new text end

new text begin (ii) school purposes; new text end

new text begin (iii) program design; new text end

new text begin (iv) financial plan; new text end

new text begin (v) governance and management structure; and new text end

new text begin (vi) background and experience; new text end

new text begin (2) any other information the authorizer requests; and new text end

new text begin (3) a "statement of assurances" of legal compliance prescribed by the commissioner. new text end

deleted text begin (b)deleted text end new text begin (c)new text end An authorizer shall not approve an application submitted by a charter school developer under paragraph (a) if the application does not comply with subdivision 3, paragraph deleted text begin (d)deleted text end new text begin (e)new text end , and section 124E.01, subdivision 1. The commissioner shall not approve an affidavit submitted by an authorizer under subdivision 4 if the affidavit does not comply with subdivision 3, paragraph deleted text begin (d)deleted text end new text begin (e)new text end , and section 124E.01, subdivision 1.

Subd. 2.

Nonprofit corporation.

(a) The school must be organized and operated as a nonprofit corporation under chapter 317A and the provisions deleted text begin under the applicabledeleted text end new text begin of that new text end chapter shall apply to the school except as provided in this chapter.

deleted text begin (b)deleted text end The operators authorized to organize and operate a schooldeleted text begin ,deleted text end new text begin must incorporate as a nonprofit corporation new text end before entering into a contract or other agreement for professional or other services, goods, or facilitiesdeleted text begin , must incorporate as a nonprofit corporation under chapter 317Adeleted text end .

deleted text begin (c)deleted text end new text begin (b)new text end Notwithstanding sections 465.717 and 465.719, a school district, subject to this chapter, may create a corporation for the purpose of establishing a charter school.

Subd. 3.

Requirements.

(a) The primary focus of a charter school must be to provide a comprehensive program of instruction for at least one grade or age group from new text begin ages new text end five through 18 years deleted text begin of agedeleted text end . deleted text begin Instructiondeleted text end new text begin A charter school new text end may deleted text begin be provideddeleted text end new text begin provide instructionnew text end to people older than 18 years of age.

new text begin (b) new text end A charter school may offer a free or fee-based preschool or prekindergarten that meets high-quality early learning instructional program standards deleted text begin that aredeleted text end aligned with Minnesota's early learning standards for children. The hours a student is enrolled in a fee-based prekindergarten program do not generate pupil units under section 126C.05 and must not be used to calculate general education revenue under section 126C.10.

deleted text begin (b)deleted text end new text begin (c)new text end A charter school must be nonsectarian in its programs, admission policies, employment practices, and all other operations. An authorizer may not authorize a charter school or program that is affiliated with a nonpublic sectarian school or a religious institution.

deleted text begin (c)deleted text end new text begin (d)new text end deleted text begin Charter schoolsdeleted text end new text begin A charter schoolnew text end must not be used deleted text begin as a method of providing deleted text end new text begin to providenew text end education or deleted text begin generatingdeleted text end new text begin generatenew text end revenue for deleted text begin students who are being deleted text end home-schoolednew text begin studentsnew text end . This paragraph does not apply to shared time aid under section 126C.19.

deleted text begin (d)deleted text end new text begin (e)new text end This chapter does not provide a means to keep open a school that a school board decides to close. However, a school board may endorse or authorize deleted text begin the establishment ofdeleted text end new text begin establishingnew text end a charter school to replace the school the board decided to close. Applicants seeking a charter under this circumstance must demonstrate to the authorizer that the charter sought is substantially different in purpose and program from the school the board closed and that the proposed charter satisfies the requirements of section 124E.01, subdivision 1. If the school board that closed the school authorizes the charter, it must document in its affidavit to the commissioner that the charter is substantially different in program and purpose from the school it closed.

deleted text begin (e)deleted text end new text begin (f)new text end A school authorized by a school board may be located in any district, unless the school board of the district of the proposed location disapproves new text begin the location new text end by written resolution.

deleted text begin (f)deleted text end new text begin (g)new text end Except as provided in paragraph deleted text begin (a)deleted text end new text begin (b)new text end , a charter school may not charge tuition.

deleted text begin (g)deleted text end new text begin (h)new text end The authorizer may prevent an approved charter school from opening for operation if, among other grounds, the charter school violates this chapter or does not meet the ready-to-open standards that are part of new text begin (1) new text end the authorizer's oversight and evaluation process or deleted text begin aredeleted text end new text begin (2)new text end stipulated in the charter school contract.

Subd. 4.

new text begin Authorizer's affidavit; new text end approval processdeleted text begin ; authorizer's affidavitdeleted text end .

new text begin (a) new text end Before deleted text begin the operatorsdeleted text end new text begin an operatornew text end may establish and operate a school, the authorizer must file an affidavit with the commissioner stating its intent to charter a school. An authorizer must file a separate affidavit for each school it intends to charter. An authorizer must file an affidavit at least 14 months before July 1 of the year the new charter school plans to serve students. The affidavit must statenew text begin :new text end

new text begin (1)new text end the terms and conditions under which the authorizer would charter a schoolnew text begin ;new text end and

new text begin (2)new text end how the authorizer intends to overseenew text begin :new text end

new text begin (i)new text end the fiscal and student performance of the charter schoolnew text begin ;new text end and

deleted text begin to complydeleted text end new text begin (ii) compliancenew text end with the terms of the written contract between the authorizer and the charter school board of directors under section 124E.10, subdivision 1.

new text begin (b)new text end The commissioner must approve or disapprove the authorizer's affidavit within 60 business days of deleted text begin receipt ofdeleted text end new text begin receivingnew text end the affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business days to address the deficiencies. The commissioner must notify the authorizer of new text begin the commissioner's new text end final approval or new text begin final new text end disapproval within 15 business days after receiving the authorizer's response to the deficiencies in the affidavit. If the authorizer does not address deficiencies to the commissioner's satisfaction, the commissioner's disapproval is final. deleted text begin Failure to obtain commissioner approval precludesdeleted text end An authorizer new text begin who fails to obtain the commissioner's approval is precluded new text end from chartering the school that is the subject of this affidavit.

Subd. 5.

deleted text begin Expansion of a charterdeleted text end new text begin Adding grades or sitesnew text end .

(a) A charter school may apply to the authorizer to amend the school charter to deleted text begin expand the operation of the school to additionaldeleted text end new text begin addnew text end grades or deleted text begin sites that would be students'deleted text end primary enrollment deleted text begin sitedeleted text end new text begin sitesnew text end beyond those defined in the original affidavit approved by the commissioner. After approving the school's application, the authorizer shall submit a deleted text begin supplementary deleted text end new text begin supplementalnew text end affidavit in the form and manner prescribed by the commissioner. The authorizer must file a deleted text begin supplementdeleted text end new text begin supplementalnew text end affidavit new text begin to the commissioner new text end by October 1 to be eligible to deleted text begin expanddeleted text end new text begin add grades or sitesnew text end in the next school year. The deleted text begin supplementary deleted text end new text begin supplementalnew text end affidavit must document deleted text begin that the school has demonstrateddeleted text end to the new text begin authorizer's new text end satisfaction deleted text begin of the authorizer the followingdeleted text end :

(1) the need for the deleted text begin expansiondeleted text end new text begin additional grades or sitesnew text end with supporting long-range enrollment projections;

(2) a longitudinal record of deleted text begin demonstrateddeleted text end student academic performance and growth on statewide assessments under chapter 120B or on other academic assessments that measure longitudinal student performance and growth approved by the charter school's board of directors and agreed upon with the authorizer;

(3) a history of sound school finances and a deleted text begin financedeleted text end plan to deleted text begin implement the expansion in a manner to promotedeleted text end new text begin add grades or sites that sustainsnew text end the school's deleted text begin financial sustainability deleted text end new text begin financesnew text end ; and

(4) board capacity deleted text begin and an administrative and management plan to implement its expansiondeleted text end new text begin to administer and manage the additional grades or sitesnew text end .

(b) The commissioner shall have 30 business days to review and comment on the supplemental affidavit. The commissioner shall notify the authorizer in writing of any deficiencies in the supplemental affidavit and the authorizer then has 20 business days to addressdeleted text begin , to the commissioner's satisfaction,deleted text end any deficiencies in the supplemental affidavit new text begin to the commissioner's satisfactionnew text end . The commissioner must notify the authorizer of final approval or new text begin final new text end disapproval within 15 business days after receiving the authorizer's response to the deficiencies in the affidavit. The school may not deleted text begin expanddeleted text end new text begin addnew text end grades or deleted text begin add deleted text end sites until the commissioner has approved the supplemental affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.

Subd. 6.

Conversion of existing schools.

A board of an independent or special school district may convert one or more of its existing schools to charter schools under this chapter if 60 percent of the full-time teachers at the school sign a petition seeking conversion. The conversion must occur at the beginning of an academic year.

Subd. 7.

Merger.

(a) Two or more charter schools may merge under chapter 317A. The effective date of a merger must be July 1. The merged school must continue under the identity of one of the merging schools. new text begin The authorizer and the merged school must execute new text end a new charter contract under section 124E.10, subdivision 1, deleted text begin must be executeddeleted text end by July 1. The authorizer must submit to the commissioner a copy of the new signed charter contract within ten business days of deleted text begin its executiondeleted text end new text begin executing the contractnew text end .

(b) Each merging school must submit a separate year-end report for the previous new text begin fiscal new text end year for that school only. After the final fiscal year of the premerger schools is closed out, new text begin each of those schools must transfer new text end the fund balances and debts deleted text begin from the merging schools must be transferreddeleted text end to the merged school.

(c) For its first year of operation, the merged school is eligible to receive aid from programs requiring approved applications equal to the sum of the aid of all of the merging schools. For aids based on prior year data, the merged school is eligible to receive aid for its first year of operation based on the combined data of all of the merging schools.

Sec. 6.

Minnesota Statutes 2015 Supplement, section 124E.07, is amended to read:

124E.07 BOARD OF DIRECTORS.

Subdivision 1.

Initial board of directors.

new text begin Before entering into a contract or other agreement for professional or other services, goods, or facilities, new text end the operators authorized to organize and operate a schooldeleted text begin , before entering into a contract or other agreement for professional or other services, goods, or facilities,deleted text end must establish a board of directors composed of at least five members who are not related partiesnew text begin . The initial board continues to serve new text end until a timely election for members of the ongoing charter school board of directors is held according to the school's articles and bylaws under subdivision 4.

Subd. 2.

Ongoing board of directors.

The ongoing board must be elected before the school completes its third year of operation. Board elections must be held during the school year but may not be conducted on days when the school is closed deleted text begin for holidays, breaks, or vacationsdeleted text end .

Subd. 3.

Membershipnew text begin criterianew text end .

(a) The new text begin ongoing new text end charter school board of directors shall deleted text begin be composed ofdeleted text end new text begin havenew text end at least five nonrelated members and include: (1) at least one licensed teacher new text begin who is new text end employed as a teacher at the school or deleted text begin providingdeleted text end new text begin provides new text end instruction under contract between the charter school and a cooperative; (2) at least one parent or legal guardian of a student enrolled in the charter school who is not an employee of the charter school; and (3) at least one interested community member who resides in Minnesota deleted text begin anddeleted text end new text begin ,new text end is not employed by the charter schoolnew text begin ,new text end and does not have a child enrolled in the school. The boardnew text begin structurenew text end may include a majority of teachers deleted text begin described indeleted text end new text begin under new text end this paragraph or parents or community members, or it may have no clear majority. The chief financial officer and the chief administrator may only serve as ex-officio nonvoting board members. No charter school employees shall serve on the board other than teachers under clause (1). Contractors providing facilities, goods, or services to a charter school shall not serve on the board of directors of the charter school.

(b) An individual is prohibited from serving as a member of the charter school board of directors ifnew text begin : (1)new text end the individual, an immediate family member, or the individual's partner is a full or part owner or principal with a for-profit or nonprofit entity or independent contractor with whom the charter school contracts, directly or indirectly, for professional services, goods, or facilitiesdeleted text begin . An individual is prohibited from serving as a board member ifdeleted text end new text begin ; or (2)new text end an immediate family member is an employee of the school. new text begin An individual may serve as a member of the board of directors if no conflict of interest exists under this paragraph, consistent with this section.new text end

new text begin (c) new text end A violation of deleted text begin this prohibitiondeleted text end new text begin paragraph (b)new text end renders a contract voidable at the option of the commissioner or the charter school board of directors. A member of a charter school board of directors who violates deleted text begin this prohibitiondeleted text end new text begin paragraph (b)new text end is individually liable to the charter school for any damage caused by the violation.

deleted text begin (c)deleted text end new text begin (d)new text end Any employee, agent, or board member of the authorizer who participates in deleted text begin the initial review, approval, ongoing oversight, evaluation, or the charter renewal or nonrenewal process or decisiondeleted text end new text begin initially reviewing, approving, overseeing, evaluating, renewing, or not renewing the charter schoolnew text end is ineligible to serve on the board of directors of a school chartered by that authorizer.

deleted text begin (d) An individual may serve as a member of the board of directors if no conflict of interest under paragraph (b) exists. deleted text end

Subd. 4.

deleted text begin Structure ofdeleted text end Boardnew text begin structurenew text end .

Board bylaws shall outline the process and procedures for changing the board's governance structure, consistent with chapter 317A. A board may change its governance structure only:

(1) by a majority vote of the board of directors and a majority vote of the licensed teachers employed by the school as teachers, including licensed teachers providing instruction under a contract between the school and a cooperative; and

(2) with the authorizer's approval.

Any change in board governance structure must conform with the new text begin board new text end composition deleted text begin of the boarddeleted text end established under this deleted text begin subdivisiondeleted text end new text begin sectionnew text end .

Subd. 5.

Eligible voters.

Staff members employed at the school, including teachers providing instruction under a contract with a cooperative, members of the board of directors, and all parents or legal guardians of children enrolled in the school are the voters eligible to elect the members of the school's board of directors. A charter school must notify eligible voters of the school board election dates at least 30 days before the election.

Subd. 6.

Duties.

The board of directors also shall decide and deleted text begin bedeleted text end new text begin isnew text end responsible for policy matters related to deleted text begin the operation ofdeleted text end new text begin operatingnew text end the school, including budgeting, curriculum programming, personnel, and operating procedures. The board shall adopt a deleted text begin policy ondeleted text end nepotism deleted text begin in employmentdeleted text end new text begin policynew text end . The board shall adopt personnel evaluation policies and practices that, at a minimum:

(1) carry out the school's mission and goals;

(2) evaluate deleted text begin the execution ofdeleted text end new text begin hownew text end charter contract goals and commitmentsnew text begin are executednew text end ;

(3) evaluate student achievement, postsecondary and workforce readiness, and student engagement and connection goals;

(4) establish a teacher evaluation process under section 124E.03, subdivision 2, paragraph (h); and

(5) provide professional development related to the individual's job responsibilities.

Subd. 7.

Training.

Every charter school board member shall attend annual training throughout the member's term deleted text begin on the boarddeleted text end . All new board members shall attend initial training on the board's role and responsibilities, employment policies and practices, and financial management. A new board member who does not begin the required initial training within six months after being seated and complete that training within 12 months deleted text begin ofdeleted text end new text begin afternew text end being seated deleted text begin on the boarddeleted text end is automatically ineligible to continue to serve as a board member. The school shall include in its annual report the training new text begin each board member new text end attended deleted text begin by each board memberdeleted text end during the previous year.

Subd. 8.

Meetings and information.

(a) Board of director meetings must comply with chapter 13Dnew text begin governing open meetingsnew text end .

(b) A charter school shall publish and maintain on the school's official Web site: (1) the new text begin meeting new text end minutes deleted text begin of meetingsdeleted text end of the board of directorsdeleted text begin ,deleted text end and of members and committees having deleted text begin anydeleted text end board-delegated authority, for at least deleted text begin one calendar yeardeleted text end new text begin 365 daysnew text end from the date of publication; (2) directory information for deleted text begin members ofdeleted text end the board of directors and new text begin for the members of new text end committees having board-delegated authority; and (3) identifying and contact information for the school's authorizer.

new text begin (c) A charter school must include new text end identifying and contact information for the school's authorizer deleted text begin must be includeddeleted text end in other school materials deleted text begin madedeleted text end new text begin it makesnew text end available to the public.

Sec. 7.

Minnesota Statutes 2015 Supplement, section 124E.08, is amended to read:

124E.08 deleted text begin COLLABORATION BETWEENdeleted text end CHARTER SCHOOL AND SCHOOL DISTRICTnew text begin COLLABORATIONnew text end .

(a) A charter school board may voluntarily enter into a two-year, renewable new text begin collaboration new text end agreement deleted text begin for collaborationdeleted text end new text begin with a school district in which the charter school is geographically locatednew text end to enhance deleted text begin studentdeleted text end new text begin thenew text end achievement deleted text begin with a school district within whose geographic boundary it operatesdeleted text end new text begin of the students in the district and the students in the charter schoolnew text end .

deleted text begin (b)deleted text end A school district deleted text begin needdeleted text end new text begin doesnew text end not new text begin need to new text end be new text begin either new text end an approved authorizer new text begin or the authorizer of the charter school new text end to enter into a collaboration agreement deleted text begin with a charter schooldeleted text end new text begin under this sectionnew text end . deleted text begin A charter school need not be authorized by the school district with which it seeks to collaborate.deleted text end

deleted text begin (c)deleted text end A charter school authorizer is prohibited from requiring a collaboration agreement as a condition of entering into or renewing a charter contract as defined in section 124E.10, subdivision 1.

deleted text begin (d) Nothing in this section or in the collaboration agreement may impact in any way the authority or autonomy of the charter school. deleted text end

deleted text begin (e) Nothing in this section or in the collaboration agreement shall cause the state to pay twice for the same student, service, or facility or otherwise impact state funding, or the flow thereof, to the school district or the charter school. deleted text end

deleted text begin (f)deleted text end new text begin (b)new text end The collaboration agreement may include, but deleted text begin needdeleted text end new text begin isnew text end not deleted text begin bedeleted text end limited to, collaboration regarding facilities, transportation, training, student achievement, assessments, mutual performance standards, and other areas of mutual agreement.

deleted text begin (g)deleted text end new text begin (c) For purposes of student assessment and reporting to the state under section 120B.36, new text end the school district may include the academic performance of the students of a collaborative charter school site deleted text begin operating within the geographic boundaries of the school district, for purposes of student assessment and reporting to the statedeleted text end new text begin under paragraph (a)new text end .

deleted text begin (h)deleted text end Districts, authorizers, or charter schools entering into a collaborative agreement are equally and collectively subject to the same state and federal accountability measures for student achievement, school performance outcomes, and school improvement strategies. The collaborative agreement and all accountability measures must be posted on the district, charter school, and authorizer Web sites.

new text begin (d) Nothing in this section or in the collaboration agreement may impact in any way the authority or autonomy of the charter school. new text end

new text begin (e) Nothing in this section or in the collaboration agreement shall cause the state to pay twice for the same student, service, or facility or otherwise impact state funding or payment to the school district or the charter school. new text end

Sec. 8.

Minnesota Statutes 2015 Supplement, section 124E.10, is amended to read:

124E.10 CHARTER CONTRACT.

Subdivision 1.

Contents.

(a) deleted text begin The authorization fordeleted text end new text begin To authorizenew text end a charter schoolnew text begin , the authorizer and the charter school board of directorsnew text end must deleted text begin be in the form ofdeleted text end new text begin signnew text end a written contract deleted text begin signed by the authorizer and the board of directors of the charter school. The contract must be completeddeleted text end within 45 business days of the commissioner's approval of the authorizer's affidavit. The authorizer shall submit deleted text begin to the commissionerdeleted text end a copy of the deleted text begin signeddeleted text end charter contract new text begin to the commissioner new text end within ten business days deleted text begin of its executiondeleted text end new text begin after the contract is signed by the contracting partiesnew text end . The contract deleted text begin for a charter schooldeleted text end must deleted text begin be in writing and containdeleted text end new text begin includenew text end at least the following:

(1) a declaration that the charter school will carry out the primary purpose in section 124E.01, subdivision 1, and new text begin indicate new text end how the school will report its implementation of the primary purposenew text begin to its authorizernew text end ;

(2) a declaration of the additional purpose or purposes in section 124E.01, subdivision 1, that the school intends to carry out and new text begin indicate new text end how the school will report its implementation of those purposesnew text begin to its authorizernew text end ;

(3) a description of the school program and the specific academic and nonacademic outcomes that pupils must achieve;

(4) a statement of admission policies and procedures;

(5) a new text begin school new text end governance, management, and administration plan deleted text begin for the schooldeleted text end ;

(6) signed agreements from charter school board members to comply with deleted text begin alldeleted text end new text begin the new text end federal and state laws governing organizational, programmatic, and financial requirements applicable to charter schools;

(7) the criteria, processes, and procedures deleted text begin thatdeleted text end the authorizer will use to monitor and evaluate the fiscal, operational, and academic performancenew text begin ,new text end consistent with subdivision 3, paragraphs (a) and (b);

(8) for contract renewal, the formal written performance evaluation deleted text begin of the school deleted text end that is a prerequisite for reviewing a charter contract under subdivision 3;

(9) types and amounts of insurance liability coverage deleted text begin to be obtained bydeleted text end the charter schoolnew text begin must obtainnew text end , consistent with section 124E.03, subdivision 2, paragraph (d);

(10) consistent with section 124E.09, paragraph (d), a provision to indemnify and hold harmless deleted text begin the authorizer and its officers, agents, and employeesdeleted text end from any suit, claim, or liability arising from any new text begin charter school new text end operation deleted text begin of the charter school,deleted text end new text begin :new text end

new text begin (i) the authorizer and its officers, agents, and employees;new text end and

new text begin (ii) notwithstanding section 3.736,new text end the commissioner and department officers, agents, and employees deleted text begin notwithstanding section 3.736deleted text end ;

(11) the term of the deleted text begin initialdeleted text end contract, whichnew text begin , for an initial contract,new text end may be up to five years plus an additional preoperational planning year, deleted text begin and up to five yearsdeleted text end new text begin ornew text end for a renewed contract or a contract with a new authorizer after a transfer of authorizersnew text begin , may be up to five yearsnew text end , if warranted by the school's academic, financial, and operational performance;

(12) how the new text begin charter school new text end board of directors or the new text begin charter school new text end operators deleted text begin of the charter schooldeleted text end will provide special instruction and services for children with a disability under sections 125A.03 to 125A.24, and 125A.65, new text begin and new text end a description of the financial parameters within which the charter school will deleted text begin operate todeleted text end provide the special instruction and services to children with a disability;

(13) the specific conditions for contract renewal that identify new text begin the new text end performance of all students under the primary purpose of section 124E.01, subdivision 1, as the most important factor in determining new text begin whether to renew the new text end contract deleted text begin renewaldeleted text end ;new text begin andnew text end

(14) the additional purposes under section 124E.01, subdivision 1, and related performance obligations under clause (7) contained in the charter contract as additional factors in determining new text begin whether to renew the new text end contract deleted text begin renewal; anddeleted text end new text begin .new text end

deleted text begin (15)deleted text end new text begin (b) In addition to the requirements of paragraph (a), the charter contract must containnew text end the plan for an orderly closing of the school under chapter 317A, new text begin that establishes the responsibilities of the school board of directors and the authorizer, new text end whether the closure is a termination for cause, a voluntary termination, or a nonrenewal of the contractdeleted text begin , that includes establishing the responsibilities of the school board of directors and the authorizer and notifyingdeleted text end new text begin . The plan must establish who is responsible for:new text end

new text begin (1) notifyingnew text end the commissioner, deleted text begin authorizer,deleted text end school district in which the charter school is located, and parents of enrolled students about the closuredeleted text begin ,deleted text end new text begin ;new text end

new text begin (2) providing parents of enrolled studentsnew text end information and assistance deleted text begin sufficientdeleted text end to enable the student to re-enroll in another schooldeleted text begin , thedeleted text end new text begin ;new text end

new text begin (3)new text end deleted text begin transfer ofdeleted text end new text begin transferringnew text end student records under section 124E.03, subdivision 5, paragraph (b), new text begin to the student's resident school district; new text end and

new text begin (4)new text end deleted text begin procedures fordeleted text end closing financial operations.

deleted text begin (b)deleted text end new text begin (c)new text end A charter school must design its programs to at least meet the outcomes adopted by the commissioner for public school students. In the absence of the commissioner's requirementsnew text begin governing state standards and benchmarksnew text end , the school must meet the outcomes contained in the contract with the authorizer. The achievement levels of the outcomes contained in the contract may exceed the achievement levels of any outcomes adopted by the commissioner for public school students.

Subd. 2.

deleted text begin Limitationsdeleted text end new text begin Limitsnew text end on charter deleted text begin contractdeleted text end new text begin school agreementsnew text end .

(a) new text begin A school must disclose to the commissioner new text end any potential contract, lease, or purchase of service from an authorizer deleted text begin must be disclosed to the commissioner,deleted text end new text begin . The contract, lease, or purchase must benew text end accepted through an open bidding processdeleted text begin ,deleted text end and be deleted text begin adeleted text end separate deleted text begin contract deleted text end from the charter contract. The school must document the open bidding process. An authorizer must not enter into a contract to provide management and financial services deleted text begin for deleted text end new text begin tonew text end a school deleted text begin thatdeleted text end it authorizes, unless the school documents deleted text begin that it receiveddeleted text end new text begin receivingnew text end at least two competitive bids.

(b) deleted text begin Thedeleted text end new text begin An authorizer must not conditionnew text end granting or deleted text begin renewal ofdeleted text end new text begin renewingnew text end a charter deleted text begin school by an authorizer must not be contingentdeleted text end onnew text begin :new text end

new text begin (1)new text end the charter school being required to contract, lease, or purchase services from the authorizerdeleted text begin .deleted text end new text begin ; ornew text end

deleted text begin (c) The granting or renewal of a charter by an authorizer must not be conditioned upondeleted text end new text begin (2)new text end the bargaining unit status of deleted text begin thedeleted text end new text begin schoolnew text end employees deleted text begin of the schooldeleted text end .

Subd. 3.

Review and comment.

(a) The authorizer shall provide a formal written evaluation of the school's performance before the authorizer renews the charter contract. The deleted text begin departmentdeleted text end new text begin commissionernew text end must review and comment on the authorizer's evaluation process at the time the authorizer submits its application for approval and each time the authorizer undergoes its five-year review under section 124E.05, subdivision 5.

(b) An authorizer shall monitor and evaluate the academic, financial, operational, and student performance of the school, and may deleted text begin for this purpose annuallydeleted text end assess a charter school a fee according to paragraph (c). The agreed-upon fee structure must be stated in the charter school contract.

(c) The fee that an authorizer may annually assess is the greater of:

(1) the basic formula allowance for that year; or

(2) the lesser of:

(i) the maximum fee factor times the basic formula allowance for that year; or

(ii) the fee factor times the basic formula allowance for that year times the charter school's adjusted pupil units for that year. The fee factor equals .015. The maximum fee factor equals 4.0.

(d) An authorizer may not assess a fee for any required services other than as provided in this subdivision.

(e) For the preoperational planning period, after a school is chartered, the authorizer may assess a charter school a fee equal to the basic formula allowance.

Subd. 4.

Causes for nonrenewal or termination of charter school contract.

(a) The duration of the contract with an authorizer must be for the term contained in the contract according to subdivision 1, paragraph (a). The authorizer may or may not renew a contract at the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally terminate a contract during the term of the contract for any ground listed in paragraph (b). At least 60 business days before not renewing or terminating a contract, the authorizer shall notify the board of directors of the charter school of the proposed action in writing. The notice shall state the grounds for the proposed action in reasonable detail and deleted text begin thatdeleted text end new text begin describe the informal hearing process, consistent with this paragraph.new text end The charter school's board of directors may request in writing an informal hearing before the authorizer within 15 business days deleted text begin ofdeleted text end new text begin afternew text end receiving notice of nonrenewal or termination of the contract. Failure by the board of directors to make a written request for an informal hearing within the 15-business-day period shall be treated as acquiescence to the proposed action. Upon receiving a timely written request for a hearing, the authorizer shall give ten business days' notice to the charter school's board of directors of the hearing date. The authorizer shall conduct an informal hearing before taking final action. The authorizer shall take final action to renew or not renew a contract no later than 20 business days before the proposed date for terminating the contract or the end date of the contract.

(b) new text begin An authorizer may terminate or not renew new text end a contract deleted text begin may be terminated or not reneweddeleted text end upon any of the following grounds:

(1) failure to demonstrate satisfactory academic achievement for all students, including the requirements for pupil performance contained in the contract;

(2) failure to meet generally accepted standards of fiscal management;

(3) violations of law; or

(4) other good cause shown.

If new text begin the authorizer terminates or does not renew new text end a contract deleted text begin is terminated or not reneweddeleted text end under this paragraph, the school must be dissolved according to the applicable provisions of chapter 317A.

(c) The commissioner, after providing reasonable notice to the board of directors of a charter school and the existing authorizer, and after providing an opportunity for a public hearing, may terminate the existing contract between the authorizer and the charter school board if the charter school has a history of:

(1) failure to meet pupil performance requirementsnew text begin ,new text end consistent with state law;

(2) financial mismanagement or failure to meet generally accepted standards of fiscal management; or

(3) repeated or major violations of the law.

Subd. 5.

Mutual nonrenewal.

If the authorizer and the charter school board of directors mutually agree not to renew the contract, a change in authorizers is allowed. The authorizer and the school board must jointly submit a written and signed letter of their intent to the commissioner to mutually not renew the contract. The authorizer that is a party to the existing contract must inform the proposed authorizer about the fiscal, operational, and student performance status of the school, as well as any outstanding contractual obligations deleted text begin that existdeleted text end . The charter contract between the proposed authorizer and the school must identify and provide a plan to address any outstanding obligations from the previous contract. new text begin The proposed authorizer must submit new text end the proposed contract deleted text begin must be submitteddeleted text end at least 105 business days before the end of the existing charter contract. The commissioner deleted text begin shall havedeleted text end new text begin hasnew text end 30 business days to review and make a determinationnew text begin on the change in authorizernew text end . The proposed authorizer and the school deleted text begin shalldeleted text end have 15 business days to respond to the determination and address any issues identified by the commissioner. deleted text begin A final determination bydeleted text end The commissioner deleted text begin shall be madedeleted text end new text begin must make a final determinationnew text end no later than 45 business days before the end of the current charter contract. If deleted text begin nodeleted text end new text begin the commissioner does not approve anew text end change in authorizer deleted text begin is approveddeleted text end , the school and the current authorizer may withdraw their letter of nonrenewal and enter into a new contract. If the deleted text begin transfer of authorizers is not approveddeleted text end new text begin commissioner does not approve a change in authorizernew text end and the current authorizer and the school do not withdraw their letter and enter into a new contract, the school must be dissolved according to applicable law and the terms of the contract.

Subd. 6.

Pupil enrollment upon nonrenewal or termination of charter school contract.

new text begin (a) new text end If a contract is not renewed or is terminated according to subdivision 4 or 5, a pupil who attended the school, siblings of the pupil, or another pupil who resides deleted text begin in the same place asdeleted text end new text begin withnew text end the pupil may enroll in the resident district or may submit an application to a nonresident district according to section 124D.03 new text begin governing open enrollment new text end at any time. Applications and notices required by section 124D.03 must be processed and provided in a prompt manner. The application and notice deadlines in section 124D.03 do not apply under these circumstances.

new text begin (b) Within ten business days of closing the charter school, new text end the closed deleted text begin charterdeleted text end school must transfer the student's educational records deleted text begin within ten business days of closuredeleted text end to the student's school district of residence where the records must be retained or transferred under section 120A.22, subdivision 7.

Sec. 9.

Minnesota Statutes 2015 Supplement, section 124E.12, is amended to read:

124E.12 EMPLOYMENT.

Subdivision 1.

Teachers.

A charter school must employ or contract with necessary teachers, as defined by section 122A.15, subdivision 1, who hold valid licenses to perform the particular service for which they are employed in the school. new text begin The commissioner may reduce new text end the charter school's state aid deleted text begin may be reduceddeleted text end under section 127A.43 if the school employs a teacher who is not appropriately licensed or approved by the board of teaching. The school may employ necessary employees who are not required to hold teaching licenses to perform duties other than teaching and may contract for other services. The school may discharge teachers and nonlicensed employees. The charter school board is subject to section 181.932new text begin governing whistle-blowersnew text end . When offering employment to a prospective employee, a charter school must give that employee a written description of the terms and conditions of employment and the school's personnel policies.

Subd. 2.

Administrators.

new text begin (a) new text end A person, without holding a valid administrator's license, may perform administrative, supervisory, or instructional leadership duties. The board of directors shall establish qualifications for new text begin all new text end persons deleted text begin thatdeleted text end new text begin who new text end hold administrative, supervisory, or instructional leadership roles. The qualifications shall deleted text begin includedeleted text end new text begin covernew text end at least deleted text begin the following areasdeleted text end : instruction and assessment; human resource and personnel management; financial management; legal and compliance management; effective communication; and board, authorizer, and community relationships. The board of directors shall use those qualifications as the basis for job descriptions, hiring, and performance evaluations of those who hold administrative, supervisory, or instructional leadership roles.

new text begin (b)new text end The board of directors and an individual who does not hold a valid administrative license and who serves in an administrative, supervisory, or instructional leadership position shall develop a professional development plan. deleted text begin Documentation of the implementation ofdeleted text end new text begin The school's annual report must include public personnel information documentingnew text end the professional development plan deleted text begin of these persons shall be included in the school's annual reportdeleted text end .

Subd. 3.

Collective bargaining.

Employees of the board of directors of a charter school may, if otherwise eligible, organize under chapter 179A and comply with its provisions. The board of directors of a charter school is a public employer, for the purposes of chapter 179A, deleted text begin upon formation ofdeleted text end new text begin when formingnew text end one or more bargaining units at the school. Bargaining units at the school must be separate from any other units within an authorizing district, except that bargaining units may remain part of the appropriate unit within an authorizing districtdeleted text begin ,deleted text end if the employees of the school, the board of directors of the school, the exclusive representative of the appropriate unit in the authorizing district, and the board of the authorizing district agree to include the employees in the appropriate unit of the authorizing district. The board of directors of a charter school with employees organized under this subdivision must comply with sections 471.6161new text begin governing group insurancenew text end and 471.895new text begin governing giftsnew text end .

Subd. 4.

Teacher and other employee retirement.

(a) Teachers in a charter school must be public school teachers for the purposes of chapters 354 and 354Anew text begin governing the Teacher Retirement Actnew text end .

(b) Except for teachers under paragraph (a), employees in a charter school must be public employees for the purposes of chapter 353new text begin governing the Public Employees Retirement Actnew text end .

Subd. 5.

Group health insurance.

new text begin (a) new text end A charter school board with at least 25 employees or a teacher cooperative of licensed teachers providing instruction under a contract between a school and a cooperative that provides group health insurance coverage shall:

(1) request proposals for group health insurance coverage from a minimum of three sources at least every two years; and

(2) notify employees covered by the group health insurance coverage before the effective date of the changes in the group coverage policy contract.

new text begin (b) new text end A charter school board or a cooperative of teachers that provides group health insurance coverage must establish and publish on its Web site the policy for deleted text begin the purchase ofdeleted text end new text begin purchasingnew text end group health insurance coverage. A charter school board policy must include a sealed proposal process, which requires all proposals to be opened at the same time. Upon deleted text begin the openings ofdeleted text end new text begin openingnew text end the proposals deleted text begin in accordance withdeleted text end new text begin according tonew text end the school or cooperative policy, the proposals become public data under chapter 13.

Nothing in this subdivision supersedes the right of an exclusive representative to negotiate deleted text begin overdeleted text end new text begin thenew text end terms and conditions of employment.

Subd. 6.

Leave to teach in a charter school.

If a teacher employed by a district makes a written request for an extended leave of absence to teach at a charter school, the district must grant the leave. The district must grant a leave not to exceed a total of five years. Any request to extend the leave shall be granted only at the discretion of the school board. The district may require deleted text begin thatdeleted text end new text begin a teacher to makenew text end the request for a leave or extension of leave deleted text begin be madedeleted text end before February 1 in the school year preceding the school year in which the teacher intends to leave, or February 1 of the calendar year in which the teacher's leave is scheduled to terminate. Except as otherwise provided in this subdivision and deleted text begin except fordeleted text end section 122A.46, subdivision 7new text begin , governing employment in another districtnew text end , the leave is governed by section 122A.46, including, but not limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.

During a leave, the teacher may continue to aggregate benefits and credits in the Teachers' Retirement Association account under chapters 354 and 354A, consistent with subdivision 4.

Sec. 10.

Minnesota Statutes 2015 Supplement, section 124E.13, is amended to read:

124E.13 FACILITIES.

Subdivision 1.

Leased space.

A charter school may lease space fromnew text begin :new text end an independent or special school boarddeleted text begin ,deleted text end new text begin ;new text end other public organizationdeleted text begin ,deleted text end new text begin ;new text end private, nonprofitnew text begin , new text end nonsectarian organizationdeleted text begin ,deleted text end new text begin ;new text end private property ownerdeleted text begin ,deleted text end new text begin ;new text end or a sectarian organization if the leased space is constructed as a school facility. The deleted text begin departmentdeleted text end new text begin commissionernew text end must review and approve or disapprove leases in a timely manner deleted text begin for purposes of determining deleted text end new text begin to determine new text end eligibility for lease aid under section 124E.22.

Subd. 2.

Related party lease costs.

(a) A charter school deleted text begin is prohibited from entering deleted text end new text begin must not enter intonew text end a lease of real property with a related party unless the lessor is a nonprofit corporation under chapter 317A or a cooperative under chapter 308A, and the lease cost is reasonable under section 124E.22, paragraph (a), clause (1).

(b) A deleted text begin lease of real property to be used for a charter school, not excluded indeleted text end new text begin related party permitted to enter into a lease undernew text end paragraph (a)deleted text begin ,deleted text end must deleted text begin containdeleted text end new text begin includenew text end the following statementnew text begin in the leasenew text end : "This lease is subject to Minnesota Statutes, section 124E.13, subdivision 2."

(c) If a charter school deleted text begin enters into as lessee a lease withdeleted text end new text begin leases space fromnew text end a related party and the charter school subsequently closes, the commissioner has the right to recover from the deleted text begin lessordeleted text end new text begin related partynew text end any lease payments in excess of those that are reasonable under section 124E.22, paragraph (a), clause (1).

Subd. 3.

Affiliated nonprofit building corporation.

(a) new text begin An affiliated nonprofit building corporation may purchase, expand, or renovate an existing facility to serve as a school or may construct a new school facility. new text end A charter school may organize an affiliated nonprofit building corporation deleted text begin (1) to purchase, expand, or renovate an existing facility to serve as a school or (2) to construct a new school facilitydeleted text end if the charter school:

deleted text begin (i)deleted text end new text begin (1)new text end has deleted text begin been in operationdeleted text end new text begin operatednew text end for at least six consecutive years;

deleted text begin (ii)deleted text end new text begin (2)new text end as of June 30new text begin ,new text end has a net positive unreserved general fund balance in the preceding three fiscal years;

deleted text begin (iii)deleted text end new text begin (3)new text end has long-range strategic and financial plans that include enrollment projections for at least five years;

deleted text begin (iv)deleted text end new text begin (4)new text end completes a feasibility study of facility options that outlines the benefits and costs of deleted text begin the optionsdeleted text end new text begin each optionnew text end ; and

deleted text begin (v)deleted text end new text begin (5)new text end has a plan deleted text begin for purchase, renovation, or new construction whichdeleted text end new text begin thatnew text end describes project parameters and budget.

(b) An affiliated nonprofit building corporation under this subdivision must:

(1) be incorporated under section 317A;

(2) comply with applicable Internal Revenue Service regulations, including regulations for "supporting organizations" as defined by the Internal Revenue Service;

(3) post on the school Web site the name, mailing address, bylaws, minutes of board meetings, and deleted text begin thedeleted text end names of the current board of directors of the affiliated nonprofit building corporation;

(4) submit to the commissioner a copy of its annual audit by December 31 of each year; and

(5) comply with government data practices law under chapter 13.

(c) An affiliated nonprofit building corporation must not serve as the leasing agent for property or facilities it does not own. A charter school that leases a facility from an affiliated nonprofit building corporation that does not own the leased facility is ineligible to receive charter school lease aid. The state is immune from liability resulting from a contract between a charter school and an affiliated nonprofit building corporation.

(d) deleted text begin Once an affiliated nonprofit building corporation is incorporated under this subdivision,deleted text end new text begin The board of directors of the charter school must ensure the affiliated nonprofit building corporation complies with all applicable legal requirements. new text end The new text begin charter school's new text end authorizer deleted text begin of the schooldeleted text end must oversee the efforts of the deleted text begin school'sdeleted text end board of directors new text begin of the charter school new text end to ensure deleted text begin the affiliated nonprofit building corporation complies with all legal requirements governing the affiliated nonprofit building corporationdeleted text end new text begin legal compliance of the affiliated building corporationnew text end . A school's board of directors that fails to ensure the affiliated nonprofit building corporation's compliance violates its responsibilities and an authorizer must deleted text begin factor thedeleted text end new text begin consider thatnew text end failure deleted text begin into the authorizer's evaluation ofdeleted text end new text begin when evaluating new text end the new text begin charter new text end school.

Subd. 4.

Positive review and comment.

new text begin If the amount of a purchase agreement or construction contract exceeds the review and comment threshold, new text end a charter school or its affiliated nonprofit building corporation must receive a positive review and comment from the commissioner before initiating any purchase agreement or construction contract deleted text begin that requires an expenditure in excess of the threshold specified in section 123B.71, subdivision 8, for school districts that do not have a capital loan outstandingdeleted text end . new text begin Without a positive review and comment from the commissioner, new text end a purchase agreement or construction contract deleted text begin finalized before a positive review and commentdeleted text end new text begin under this subdivisionnew text end is null and void.new text begin For purposes of this subdivision, "review and comment threshold" means the dollar amount specified in section 123B.71, subdivision 8, applicable to a school entity that is not a recipient of a maximum effort capital loan.new text end

Sec. 11.

Minnesota Statutes 2015 Supplement, section 124E.15, is amended to read:

124E.15 TRANSPORTATION.

(a) A charter school must comply with all pupil transportation requirements in section 123B.88, subdivision 1. A charter school must not require parents to surrender their rights to pupil transportation under section 123B.88, subdivision 2.

(b) deleted text begin A charter school after its first fiscal year of operation by March 1 of each fiscal year anddeleted text end A charter school deleted text begin by July 1 of its first fiscal year of operationdeleted text end must notify the district in which the school is located and the deleted text begin Department of Educationdeleted text end new text begin commissioner by July 1 of its first fiscal year of operationnew text end if it will provide its own transportation or use the transportation services of the district in which it is located deleted text begin for the fiscal yeardeleted text end .new text begin For each subsequent year of operation, a charter school must give that district and the commissioner notice by March 1 for the following fiscal year.new text end

(c) If a charter school elects to provide transportation for pupils, new text begin the charter school must provide new text end the transportation deleted text begin must be provided by the charter schooldeleted text end within the district in which the charter school is located. The state must pay transportation aid to the charter school according to section 124E.23.

new text begin (d) new text end For pupils who reside outside the district in which the charter school is located, the charter school is not required to provide or pay for transportation between the pupil's residence and the border of the district in which the charter school is located. new text begin The charter school may reimburse new text end a parent deleted text begin may be reimbursed by the charter schooldeleted text end for costs of transportation from the pupil's residence to the border of the district in which the charter school is located if the pupil is from a family whose income is at or below the poverty level, as determined by the federal government. The reimbursement may not exceed the pupil's actual cost of transportation or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for more than 250 miles per week.

deleted text begin At the time a pupil enrolls in a charter school, the charter school must provide the parent or guardian with information regarding the transportation. deleted text end

deleted text begin (d)deleted text end new text begin (e)new text end If a charter school does not elect to provide transportation, new text begin the district in which the school is located must provide new text end transportation deleted text begin for pupils enrolled at the school must be provided by the district in which the school is locateddeleted text end , according to sections 123B.88, subdivision 6new text begin , governing transporting nonresident pupilsnew text end , and 124D.03, subdivision 8, for a pupil residing in the same district in which the charter school is located. new text begin The district in which the charter school is located may provide new text end transportation deleted text begin may be provided by the district in which the school is locateddeleted text end , according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8new text begin , governing open enrollment transportationnew text end , for a pupil residing in a different district. If the district provides the transportation, the scheduling of routes, manner and method of transportation, control and discipline of the pupils, and any other matter relating to the transportation of pupils under this paragraph deleted text begin shall bedeleted text end new text begin isnew text end within the sole discretion, control, and management of the district.

new text begin (f) The charter school must provide the parent or guardian with information about transportation when a pupil enrolls. new text end

Sec. 12.

Minnesota Statutes 2015 Supplement, section 124E.16, is amended to read:

124E.16 REPORTS.

Subdivision 1.

Audit report.

(a) A charter school is subject to the same financial audits, audit procedures, and audit requirements as a district, except as required under this subdivision. Audits must be conducted in compliance with generally accepted governmental auditing standards, the federal Single Audit Act, if applicable, and section 6.65new text begin governing auditing proceduresnew text end . A charter school is subject to and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06deleted text begin ; deleted text end new text begin governing government property and financial investments; and sectionsnew text end 471.38; 471.391; 471.392; and 471.425new text begin governing municipal contractingnew text end . The audit must comply with the requirements of sections 123B.75 to 123B.83new text begin governing school district financenew text end , except deleted text begin to the extent deviations are necessary because of the program at the schooldeleted text end new text begin when the commissioner and authorizer approve a deviation made necessary because of school program financesnew text end . deleted text begin Deviations must be approved by the commissioner and authorizer.deleted text end The deleted text begin Department of Educationdeleted text end new text begin commissionernew text end , state auditor, legislative auditor, or authorizer may conduct financial, program, or compliance audits. A charter school deleted text begin determined to be deleted text end in statutory operating debt under sections 123B.81 to 123B.83 must submit a plan under section 123B.81, subdivision 4.

(b) The charter school must submit an audit report to the commissioner and its authorizer new text begin annually new text end by December 31 deleted text begin each yeardeleted text end .

(c) The charter school, with the assistance of the auditor conducting the audit, must include with the report, as supplemental informationdeleted text begin ,deleted text end new text begin : (1)new text end a copy of management agreements with a charter management organization or an educational management organization and new text begin (2) new text end service agreements or contracts over the lesser of $100,000 or ten percent of the school's most recent annual audited expenditures. The agreements must detail the terms of the agreement, including the services provided and the annual costs for those services. If the entity that provides the professional services to the charter school is exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity must file with the commissioner by February 15 a copy of the annual return required under section 6033 of the Internal Revenue Code of 1986.

(d) A charter school independent audit report shall include audited financial data of an affiliated building corporation new text begin under section 124E.13, subdivision 3, new text end or other component unit.

(e) If the audit report finds that a material weakness exists in the financial reporting systems of a charter school, the charter school must submit a written report to the commissioner explaining how thenew text begin charter school will resolve thatnew text end material weakness deleted text begin will be resolveddeleted text end . An auditor, as a condition of providing financial services to a charter school, must agree to make available information about a charter school's financial audit to the commissioner and authorizer upon request.

Subd. 2.

Annual public reports.

(a) A charter school must publish an annual report approved by the board of directors. The annual report must at least include information on school enrollment, student attrition, governance and management, staffing, finances, academic performance, innovative practices and implementation, and future plans. A charter school may combine this report with the reporting required under section 120B.11 new text begin governing the world's best workforcenew text end . A charter school must post the annual report on the school's official Web site. A charter school new text begin also new text end must deleted text begin alsodeleted text end distribute the annual report by publication, mail, or electronic means to its authorizer, school employees, and parents and legal guardians of students enrolled in the charter school. The reports are public data under chapter 13.

(b) The commissioner shall establish specifications for an authorizer's annual public report that is part of the system to evaluate authorizer performance under section 124E.05, subdivision 5. The report shall at least include key indicators of school academic, operational, and financial performance.

Sec. 13.

Minnesota Statutes 2015 Supplement, section 124E.17, is amended to read:

124E.17 DISSEMINATION OF INFORMATION.

Subdivision 1.

Charter school information.

(a) deleted text begin Authorizers and the department must disseminate information to the public on how to form and operate a charter school. deleted text end Charter schools must disseminate information about how to use the new text begin charter school new text end offerings deleted text begin of a charter schooldeleted text end new text begin to targeted groups, among othersnew text end . Targeted groups include low-income families and communities, students of color, and students who are at risk of academic failure.

(b) new text begin Authorizers and the commissioner must disseminate information to the public on how to form and operate a charter school. new text end Authorizers, operators, and the deleted text begin department deleted text end new text begin commissionernew text end also may disseminate informationnew text begin to interested stakeholdersnew text end about the successful best practices in teaching and learning demonstrated by charter schools.

Subd. 2.

Financial information.

Upon request of an individual, the charter school must deleted text begin alsodeleted text end make available in a timely fashion financial statements showing all operations and transactions affectingnew text begin the school'snew text end income, surplus, and deficit during the deleted text begin school's deleted text end last annual accounting period; and a balance sheet summarizing assets and liabilities on the closing date of the accounting period. A charter school also must include that same information about its authorizer in other school materials that it makes available to the public.

Sec. 14.

Minnesota Statutes 2015 Supplement, section 124E.22, is amended to read:

124E.22 BUILDING LEASE AID.

(a) When a charter school finds it economically advantageous to rent or lease a building or land for any instructional deleted text begin purposesdeleted text end new text begin purposenew text end and it determines that the total operating capital revenue under section 126C.10, subdivision 13, is insufficient for this purpose, it may apply to the commissioner for building lease aid deleted text begin for this purposedeleted text end . The commissioner must review and either approve or deny a lease aid application using the following criteria:

(1) the reasonableness of the price based on current market values;

(2) the extent to which the lease conforms to applicable state laws and rules; and

(3) the appropriateness of the proposed lease in the context of the space needs and financial circumstances of the charter school. The commissioner must approve aid only for a facility lease that has (i) a sum certain annual cost and (ii) a closure clause to relieve the charter school of its lease obligations at the time the charter contract is terminated or not reneweddeleted text begin ;deleted text end new text begin .new text end The closure clause new text begin under item (ii) new text end must not be constructed or construed to relieve the charter school of its lease obligations in effect before the charter contract is terminated or not renewed.

new text begin (b) new text end A charter school must not use the building lease aid it receives for custodial, maintenance service, utility, or other operating costs.

deleted text begin (b)deleted text end new text begin (c)new text end The amount of annual building lease aid for a charter school shall not exceed the lesser of (1) 90 percent of the approved cost or (2) the product of the pupil units served for the current school year times $1,314.

Sec. 15.

Minnesota Statutes 2015 Supplement, section 124E.24, is amended to read:

124E.24 OTHER AID, GRANTS, AND REVENUE.

(a) A charter school is eligible to receive other aids, grants, and revenue according to chapters 120A to 129C, as though it were a district.

(b) Notwithstanding paragraph (a), a charter school may not receive aid, a grant, or revenue if a levy is required to obtain the money, or if the aid, grant, or revenue replaces levy revenue that is not general education revenue, except as otherwise provided in this chapter.

(c) Federal aid received by the state must be paid to the school, if it qualifies for the aidnew text begin ,new text end as though it were a school district.

(d) A charter school may receive money from any source for capital facilities needs. In the year-end report to the commissioner deleted text begin of educationdeleted text end , the charter school shall report the total amount of funds new text begin it new text end received from grants and other outside sources.

Sec. 16.

Minnesota Statutes 2015 Supplement, section 124E.25, is amended to read:

124E.25 PAYMENT OF AIDS TO CHARTER SCHOOLS.

Subdivision 1.

Payments.

deleted text begin (a)deleted text end Notwithstanding section 127A.45, subdivision 3, if the current year aid payment percentage under section 127A.45, subdivision 2, paragraph (d), is 90 or greater, aid payments for the current fiscal year to a charter school shall be of an equal amount on each of the 24 payment dates. Notwithstanding section 127A.45, subdivision 3, if the current year aid payment percentage under section 127A.45, subdivision 2, paragraph (d), is less than 90, aid payments for the current fiscal year to a charter school shall be of an equal amount on each of the 16 payment dates in July through February.

new text begin Subd. 1a. new text end

new text begin School closures; payments. new text end

deleted text begin (b)deleted text end new text begin (a)new text end Notwithstanding deleted text begin paragraph (a) deleted text end new text begin subdivision 1new text end and section 127A.45, for a charter school ceasing operation on or deleted text begin prior todeleted text end new text begin beforenew text end June 30 deleted text begin of a school yeardeleted text end , for the payment periods occurring after the school ceases serving students, the commissioner shall withhold the estimated state aid owed the school. The charter school board of directors and authorizer must submit to the commissioner a closure plan under chapter 308A or 317A, and financial information about the school's liabilities and assets. After receiving the closure plan, financial information, an audit of pupil counts, deleted text begin documentation ofdeleted text end new text begin and documentednew text end lease expendituresdeleted text begin ,deleted text end new text begin from the charter schoolnew text end and monitoring deleted text begin ofdeleted text end special education expenditures, the commissioner may release cash withheld and may continue regular payments up to the current year payment percentages if further amounts are owed. If, based on audits and monitoring, the school received state aid in excess of the amount owed, the commissioner shall retain aid withheld sufficient to eliminate the aid overpayment.

new text begin (b) new text end For a charter school ceasing operations deleted text begin prior to,deleted text end new text begin beforenew text end or at the end ofdeleted text begin ,deleted text end a school year, notwithstanding section 127A.45, subdivision 3, new text begin the commissioner may make new text end preliminary final payments deleted text begin may be madedeleted text end after deleted text begin receivingdeleted text end new text begin the school submitsnew text end the closure plan, new text begin an new text end audit of pupil counts, deleted text begin monitoring of special education expenditures, documentation ofdeleted text end new text begin documentednew text end lease expenditures, and deleted text begin school submission ofdeleted text end Uniform Financial Accounting and Reporting Standards (UFARS) financial data new text begin and the commissioner monitors special education expenditures new text end for the final year of operation. new text begin The commissioner may make the new text end final payment deleted text begin may be made upon receipt ofdeleted text end new text begin after receiving new text end audited financial statements under section 123B.77, subdivision 3.

(c) Notwithstanding sections 317A.701 to 317A.791, deleted text begin upon closure ofdeleted text end new text begin after closing new text end a charter school and deleted text begin satisfaction ofdeleted text end new text begin satisfyingnew text end creditors, new text begin remaining new text end cash and investment balances deleted text begin remainingdeleted text end shall be returned new text begin by the commissioner new text end to the statenew text begin general fundnew text end .

Subd. 2.

Requirements.

(a) deleted text begin In orderdeleted text end To receive state aid payments under this section, a charter school in its first three years of operation must submit new text begin to the commissioner new text end a school calendar in the form and manner requested by the deleted text begin departmentdeleted text end new text begin commissionernew text end and a quarterly report deleted text begin to the Department of Educationdeleted text end . The new text begin quarterly new text end report must list each student by grade, show the student's start and end dates, if deleted text begin anydeleted text end new text begin applicablenew text end , deleted text begin with the charter school,deleted text end andnew text begin ,new text end for any student participating in a learning year program, the report must list the hours and times of learning year activities. The new text begin charter school must submit the new text end report deleted text begin must be submitteddeleted text end new text begin to the commissioner new text end not more than two weeks after the end of the calendar quarter deleted text begin to the departmentdeleted text end . The deleted text begin departmentdeleted text end new text begin commissionernew text end must develop a Web-based reporting form for charter schools to use when submitting new text begin quarterly new text end enrollment reports.

new text begin (b) To receive state aid payments under this section,new text end a charter school in its fourth and subsequent year of operation must submit a school calendar and enrollment information to the deleted text begin departmentdeleted text end new text begin commissionernew text end in the form and manner requested by the deleted text begin department deleted text end new text begin commissionernew text end .

deleted text begin (b)deleted text end new text begin (c)new text end A charter school must have a valid, signed contract under section 124E.10, subdivision 1, on file deleted text begin atdeleted text end new text begin withnew text end the deleted text begin Department of Educationdeleted text end new text begin commissionernew text end at least 15 days deleted text begin prior todeleted text end new text begin beforenew text end the date of first payment of state aid for the fiscal year.

deleted text begin (c)deleted text end new text begin (d) The commissioner shall computenew text end state aid entitlements deleted text begin shall be computed deleted text end for a charter school only for the portion of a school year for which it has a valid, signed contract under section 124E.10, subdivision 1.

Subd. 3.

Aid reductions.

(a) The commissioner may reduce a charter school's state aid under section 127A.42 or 127A.43 if the charter school board fails to correct a violation under this chapter.

(b) The commissioner may reduce a charter school's state aid by an amount not to exceed 60 percent of the charter school's basic revenue for the period of time deleted text begin thatdeleted text end a deleted text begin violation ofdeleted text end law deleted text begin occursdeleted text end new text begin was violatednew text end .

Subd. 4.

Aid withholding.

(a) If a charter school fails to comply with the commissioner's directive to return, for cause, federal or state funds administered by the department, the commissioner may withhold an amount of state aid sufficient to satisfy the directive.

(b) Ifdeleted text begin , within the timeline under section 471.425,deleted text end new text begin after receiving an undisputed invoice for goods and services,new text end a charter school fails to pay the state of Minnesota, a school district, intermediate school district, or service cooperative deleted text begin after receiving an undisputed invoice for goods and servicesdeleted text end new text begin within the timeline under section 471.425new text end , the commissioner may withhold an amount of state aid sufficient to satisfy the claim and shall distribute the withheld aid to the interested state agency, school district, intermediate school district, or service cooperative. An interested state agency, school district, intermediate school district, or education cooperative shall notify the commissioner when a charter school fails to pay an undisputed invoice within 75 business days of when it received the original invoice.

Sec. 17.

Minnesota Statutes 2015 Supplement, section 124E.26, is amended to read:

124E.26 USE OF STATE MONEY.

deleted text begin Money received from the state may not be useddeleted text end new text begin A charter school may not use state moneynew text end to purchase land or buildings. The new text begin charter new text end school may own land and buildings if obtained through nonstate sources.

Sec. 18.

new text begin SUPERSEDING ACTS. new text end

new text begin Any amendments or repeals enacted in the 2016 session of the legislature to sections also amended or repealed in this article of this act supersede the amendments in this article of this act regardless of order of enactment. new text end

ARTICLE 27

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2015 Supplement, section 120A.41, is amended to read:

120A.41 LENGTH OF SCHOOL YEAR; HOURS OF INSTRUCTION.

A school board's annual school calendar must include at least 425 hours of instruction for a kindergarten student without a disability, 935 hours of instruction for a student in grades 1 through 6, and 1,020 hours of instruction for a student in grades 7 through 12, not including summer school. The school calendar for all-day kindergarten must include at least 850 hours of instruction for the school year. new text begin The school calendar for a prekindergarten student under section 124D.151, if offered by the district, must include at least 350 hours of instruction for the school year. new text end A school board's annual calendar must include at least 165 days of instruction for a student in grades 1 through 11 unless a four-day week schedule has been approved by the commissioner under section 124D.126.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 2.

Minnesota Statutes 2014, section 123A.24, subdivision 2, is amended to read:

Subd. 2.

Cooperative unit defined.

For the purposes of this section, a cooperative unit is:

(1) an education district organized under sections 123A.15 to 123A.19;

(2) a cooperative vocational center organized under section 123A.22;

(3) an intermediate district organized under chapter 136D;

(4) a service cooperative organized under section 123A.21; deleted text begin ordeleted text end

(5) a regional management information center organized under section 123A.23 or as a joint powers district according to section 471.59deleted text begin .deleted text end new text begin ; ornew text end

new text begin (6) a special education cooperative organized under section 471.59. new text end

Sec. 3.

Minnesota Statutes 2014, section 124D.111, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Federal child and adult food program; criteria and notice. new text end

new text begin The commissioner must post on the department's Web site eligibility criteria and application information for nonprofit organizations interested in applying to the commissioner for approval as a multisite sponsoring organization under the federal child and adult care food program. The posted criteria and information must inform interested nonprofit organizations about: new text end

new text begin (1) the criteria the commissioner uses to approve or disapprove an application, including how an applicant demonstrates financial viability for the Minnesota program, among other criteria; new text end

new text begin (2) the commissioner's process and time line for notifying an applicant when its application is approved or disapproved and, if the application is disapproved, the explanation the commissioner provides to the applicant; and new text end

new text begin (3) any appeal or other recourse available to a disapproved applicant. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 4.

Minnesota Statutes 2014, section 124D.1158, subdivision 3, is amended to read:

Subd. 3.

Program reimbursement.

Each school year, the state must reimburse each participating school 30 cents for each reduced-price breakfast, 55 cents for each fully paid breakfast served to students in grades 1 to 12, and $1.30 for each fully paid breakfast served to new text begin a prekindergarten student enrolled in an approved voluntary prekindergarten program under section 124D.151 or new text end a kindergarten student.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 5.

Minnesota Statutes 2014, section 124D.1158, subdivision 4, is amended to read:

Subd. 4.

No fees.

A school that receives school breakfast aid under this section must make breakfast available without charge to all participating students in grades 1 to 12 who qualify for free or reduced-price meals and to new text begin all prekindergarten students enrolled in an approved voluntary prekindergarten program under section 124D.151 and new text end all kindergarten students.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 6.

new text begin [124D.151] VOLUNTARY PREKINDERGARTEN PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin A district, a charter school, a group of districts, a group of charter schools, or a group of districts and charter schools may establish a voluntary prekindergarten program. The purpose of a voluntary prekindergarten program is to prepare children for success as they enter kindergarten in the following year. new text end

new text begin Subd. 2. new text end

new text begin Program requirements. new text end

new text begin (a) A voluntary prekindergarten program provider must: new text end

new text begin (1) provide instruction through play-based learning to foster children's social and emotional development, cognitive development, physical and motor development, and language and literacy skills, including the native language and literacy skills of English learners, to the extent practicable; new text end

new text begin (2) measure each child's cognitive and social skills using a formative measure aligned to the state's early learning standards when the child enters and again before the child leaves the program, screening and progress monitoring measures, and others from the state-approved menu of kindergarten entry profile measures; new text end

new text begin (3) provide comprehensive program content including the implementation of curriculum, assessment, and instructional strategies aligned with the state early learning standards, and kindergarten through grade 3 academic standards; new text end

new text begin (4) provide instructional content and activities that are of sufficient length and intensity to address learning needs including offering a program with at least 350 hours of instruction per school year for a prekindergarten student; new text end

new text begin (5) provide voluntary prekindergarten instructional staff salaries comparable to the salaries of local kindergarten through grade 12 instructional staff; new text end

new text begin (6) coordinate appropriate kindergarten transition with families, community-based prekindergarten programs, and school district kindergarten programs; new text end

new text begin (7) involve parents in program planning and transition planning by implementing parent engagement strategies that include culturally and linguistically responsive activities in prekindergarten through third grade that are aligned with early childhood family education under section 124D.13; new text end

new text begin (8) coordinate with relevant community-based services, including health and social service agencies, to ensure children have access to comprehensive services; new text end

new text begin (9) coordinate with all relevant school district programs and services including early childhood special education, homeless students, and English learners; new text end

new text begin (10) ensure staff-to-child ratios of one-to-ten and a maximum group size of 20 children; new text end

new text begin (11) provide high-quality coordinated professional development, training, and coaching for both school district and community-based early learning providers that is informed by a measure of adult-child interactions and enables teachers to be highly knowledgeable in early childhood curriculum content, assessment, native and English language development programs, and instruction; and new text end

new text begin (12) implement strategies that support the alignment of professional development, instruction, assessments, and prekindergarten through grade 3 curricula. new text end

new text begin (b) A voluntary prekindergarten program must have teachers knowledgeable in early childhood curriculum content, assessment, native and English language programs, and instruction. new text end

new text begin (c) Districts and charter schools must include their strategy for implementing and measuring the impact of their voluntary prekindergarten program under section 120B.11 and provide results in their world's best workforce annual summary to the commissioner of education. new text end

new text begin Subd. 3. new text end

new text begin Mixed delivery of services. new text end

new text begin A district or charter school may contract with a charter school, Head Start or child care centers, family child care programs licensed under section 245A.03, or a community-based organization to provide eligible children with developmentally appropriate services that meet the program requirements in subdivision 2. Components of a mixed-delivery plan include strategies for recruitment, contracting, and monitoring of fiscal compliance and program quality. new text end

new text begin Subd. 4. new text end

new text begin Eligibility. new text end

new text begin A child who is four years of age as of September 1 in the calendar year in which the school year commences is eligible to participate in a voluntary prekindergarten program free of charge. Each eligible child must complete a health and developmental screening within 90 days of program enrollment under sections 121A.16 to 121A.19, and provide documentation of required immunizations under section 121A.15. new text end

new text begin Subd. 5. new text end

new text begin Application process; priority for high poverty schools. new text end

new text begin (a) To qualify for program approval for fiscal year 2017, a district or charter school must submit an application to the commissioner by July 1, 2016. To qualify for program approval for fiscal year 2018 and later, a district or charter school must submit an application to the commissioner by January 30 of the fiscal year prior to the fiscal year in which the program will be implemented. The application must include: new text end

new text begin (1) a description of the proposed program, including the number of hours per week the program will be offered at each school site or mixed-delivery location; new text end

new text begin (2) an estimate of the number of eligible children to be served in the program at each school site or mixed-delivery location; and new text end

new text begin (3) a statement of assurances signed by the superintendent or charter school director that the proposed program meets the requirements of subdivision 2. new text end

new text begin (b) The commissioner must review all applications submitted for fiscal year 2017 by August 1, 2016, and must review all applications submitted for fiscal year 2018 and later by March 1 of the fiscal year in which the applications are received and determine whether each application meets the requirements of paragraph (a). new text end

new text begin (c) The commissioner must divide all applications for new or expanded programs meeting the requirements of paragraph (a) into four groups as follows: the Minneapolis and St. Paul school districts; other school districts located in the metropolitan equity region as defined in section 126C.10, subdivision 28; school districts located in the rural equity region as defined in section 126C.10, subdivision 28; and charter schools. Within each group, the applications must be ordered by rank using a sliding scale based on the following criteria: new text end

new text begin (1) concentration of kindergarten students eligible for free or reduced-price lunches by school site on October 1 of the previous school year. For school district programs to be operated at locations that do not have free and reduced-price lunch concentration data for kindergarten programs for October 1 of the previous school year, including mixed-delivery programs, the school district average concentration of kindergarten students eligible for free or reduced-price lunches must be used for the rank ordering; new text end

new text begin (2) presence or absence of a three- or four-star Parent Aware rated program within the school district or close proximity of the district. School sites with the highest concentration of kindergarten students eligible for free or reduced-price lunches that do not have a three- or four-star Parent Aware program within the district or close proximity of the district shall receive the highest priority, and school sites with the lowest concentration of kindergarten students eligible for free or reduced-price lunches that have a three- or four-star Parent Aware rated program within the district or close proximity of the district shall receive the lowest priority. new text end

new text begin (d) The aid available for the program as specified in subdivision 6, paragraph (b), must initially be allocated among the four groups based on each group's percentage share of the statewide kindergarten enrollment on October 1 of the previous school year. Within each group, the available aid must be allocated among school sites in priority order until that region's share of the aid limit is reached. If the aid limit is not reached for all groups, the remaining amount must be allocated to the highest priority school sites, as designated under this section, not funded in the initial allocation on a statewide basis. new text end

new text begin (e) Once a school site is approved for aid under this subdivision, it shall remain eligible for aid if it continues to meet program requirements, regardless of changes in the concentration of students eligible for free or reduced-price lunches. new text end

new text begin (f) If the total aid entitlement approved based on applications submitted under paragraph (a) is less than the aid entitlement limit under subdivision 6, paragraph (b), the commissioner must notify all school districts and charter schools of the amount that remains available within 30 days of the initial application deadline under paragraph (a), and complete a second round of allocations based on applications received within 60 days of the initial application deadline. new text end

new text begin (g) Procedures for approving applications submitted under paragraph (f) shall be the same as specified in paragraphs (a) to (d), except that the allocations shall be made to the highest priority school sites not funded in the initial allocation on a statewide basis. new text end

new text begin Subd. 6. new text end

new text begin Program and aid entitlement limits. new text end

new text begin (a) Notwithstanding section 126C.05, subdivision 1, paragraph (d), the pupil units for a voluntary prekindergarten program for an eligible school district or charter school must not exceed 60 percent of the kindergarten pupil units for that school district or charter school under section 126C.05, subdivision 1, paragraph (e). new text end

new text begin (b) In reviewing applications under subdivision 5, the commissioner must limit the estimated state aid entitlement approved under this section to $27,092,000 for fiscal year 2017, $27,239,000 for fiscal year 2018, and $26,399,000 for fiscal year 2019 and later. If the actual state aid entitlement based on final data exceeds the limit in any year, the aid of the participating districts must be prorated so as not to exceed the limit. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 7.

Minnesota Statutes 2015 Supplement, section 124D.59, subdivision 2, is amended to read:

Subd. 2.

English learner.

(a) "English learner" means a pupil in kindergarten through grade 12 new text begin or a prekindergarten student enrolled in an approved voluntary prekindergarten program under section 124D.151 new text end who meets the requirements under subdivision 2a or the following requirements:

(1) the pupil, as declared by a parent or guardian first learned a language other than English, comes from a home where the language usually spoken is other than English, or usually speaks a language other than English; and

(2) the pupil is determined by a valid assessment measuring the pupil's English language proficiency and by developmentally appropriate measures, which might include observations, teacher judgment, parent recommendations, or developmentally appropriate assessment instruments, to lack the necessary English skills to participate fully in academic classes taught in English.

(b) A pupil enrolled in a Minnesota public school in any grade 4 through 12 who in the previous school year took a commissioner-provided assessment measuring the pupil's emerging academic English, shall be counted as an English learner in calculating English learner pupil units under section 126C.05, subdivision 17, and shall generate state English learner aid under section 124D.65, subdivision 5, if the pupil scored below the state cutoff score or is otherwise counted as a nonproficient participant on the assessment measuring the pupil's emerging academic English, or, in the judgment of the pupil's classroom teachers, consistent with section 124D.61, clause (1), the pupil is unable to demonstrate academic language proficiency in English, including oral academic language, sufficient to successfully and fully participate in the general core curriculum in the regular classroom.

(c) Notwithstanding paragraphs (a) and (b), a pupil in deleted text begin kindergartendeleted text end new text begin prekindergarten under section 124D.151, new text end through grade 12 shall not be counted as an English learner in calculating English learner pupil units under section 126C.05, subdivision 17, and shall not generate state English learner aid under section 124D.65, subdivision 5, if:

(1) the pupil is not enrolled during the current fiscal year in an educational program for English learners under sections 124D.58 to 124D.64; or

(2) the pupil has generated seven or more years of average daily membership in Minnesota public schools since July 1, 1996.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 8.

Minnesota Statutes 2014, section 124D.68, subdivision 2, is amended to read:

Subd. 2.

Eligible pupils.

new text begin (a) new text end A pupil under the age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c), is eligible to participate in the graduation incentives program, if the pupil:

(1) performs substantially below the performance level for pupils of the same age in a locally determined achievement test;

(2) is behind in satisfactorily completing coursework or obtaining credits for graduation;

(3) is pregnant or is a parent;

(4) has been assessed as chemically dependent;

(5) has been excluded or expelled according to sections 121A.40 to 121A.56;

(6) has been referred by a school district for enrollment in an eligible program or a program pursuant to section 124D.69;

(7) is a victim of physical or sexual abuse;

(8) has experienced mental health problems;

(9) has experienced homelessness sometime within six months before requesting a transfer to an eligible program;

(10) speaks English as a second language or is an English learner; or

(11) has withdrawn from school or has been chronically truant; or

(12) is being treated in a hospital in the seven-county metropolitan area for cancer or other life threatening illness or is the sibling of an eligible pupil who is being currently treated, and resides with the pupil's family at least 60 miles beyond the outside boundary of the seven-county metropolitan area.

new text begin (b) For the 2016-2017 school year only, a pupil otherwise qualifying under paragraph (a) who is at least 21 years of age and not yet 22 years of age, is an English learner with an interrupted formal education according to section 124D.59, subdivision 2a, and was in an early middle college program during the previous school year is eligible to participate in the graduation incentives program under section 124D.68 and in concurrent enrollment courses offered under section 124D.09, subdivision 10, and is funded in the same manner as other pupils under this section. new text end

Sec. 9.

Minnesota Statutes 2015 Supplement, section 126C.05, subdivision 1, is amended to read:

Subdivision 1.

Pupil unit.

Pupil units for each Minnesota resident pupil under the age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c), in average daily membership enrolled in the district of residence, in another district under sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under chapter 124E; or for whom the resident district pays tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this subdivision.

(a) A prekindergarten pupil with a disability who is enrolled in a program approved by the commissioner and has an individualized education program is counted as the ratio of the number of hours of assessment and education service to 825 times 1.0 with a minimum average daily membership of 0.28, but not more than 1.0 pupil unit.

(b) A prekindergarten pupil who is assessed but determined not to be disabled is counted as the ratio of the number of hours of assessment service to 825 times 1.0.

(c) A kindergarten pupil with a disability who is enrolled in a program approved by the commissioner is counted as the ratio of the number of hours of assessment and education services required in the fiscal year by the pupil's individualized education program to 875, but not more than one.

new text begin (d) A prekindergarten pupil who is not included in paragraph (a) or (b) and is enrolled in an approved voluntary prekindergarten program under section 124D.151 is counted as the ratio of the number of hours of instruction to 850 times 1.0, but not more than 0.6 pupil units. new text end

deleted text begin (d)deleted text end new text begin (e)new text end A kindergarten pupil who is not included in paragraph (c) is counted as 1.0 pupil unit if the pupil is enrolled in a free all-day, every day kindergarten program available to all kindergarten pupils at the pupil's school that meets the minimum hours requirement in section 120A.41, or is counted as .55 pupil unit, if the pupil is not enrolled in a free all-day, every day kindergarten program available to all kindergarten pupils at the pupil's school.

deleted text begin (e)deleted text end new text begin (f)new text end A pupil who is in any of grades 1 to 6 is counted as 1.0 pupil unit.

deleted text begin (f)deleted text end new text begin (g)new text end A pupil who is in any of grades 7 to 12 is counted as 1.2 pupil units.

deleted text begin (g)deleted text end new text begin (h)new text end A pupil who is in the postsecondary enrollment options program is counted as 1.2 pupil units.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 10.

Minnesota Statutes 2014, section 126C.05, subdivision 3, is amended to read:

Subd. 3.

Compensation revenue pupil units.

Compensation revenue pupil units for fiscal year 1998 and thereafter must be computed according to this subdivision.

(a) The compensation revenue concentration percentage for each building in a district equals the product of 100 times the ratio of:

(1) the sum of the number of pupils enrolled in the building eligible to receive free lunch plus one-half of the pupils eligible to receive reduced priced lunch on October 1 of the previous fiscal year; to

(2) the number of pupils enrolled in the building on October 1 of the previous fiscal year.

(b) The compensation revenue pupil weighting factor for a building equals the lesser of one or the quotient obtained by dividing the building's compensation revenue concentration percentage by 80.0.

(c) The compensation revenue pupil units for a building equals the product of:

(1) the sum of the number of pupils enrolled in the building eligible to receive free lunch and one-half of the pupils eligible to receive reduced priced lunch on October 1 of the previous fiscal year; times

(2) the compensation revenue pupil weighting factor for the building; times

(3) .60.

(d) Notwithstanding paragraphs (a) to (c), for new text begin voluntary prekindergarten programs under section 124D.151, new text end charter schoolsnew text begin ,new text end and contracted alternative programs in the first year of operation, compensation revenue pupil units shall be computed using data for the current fiscal year. If the new text begin voluntary prekindergarten program, new text end charter schoolnew text begin ,new text end or contracted alternative program begins operation after October 1, compensatory revenue pupil units shall be computed based on pupils enrolled on an alternate date determined by the commissioner, and the compensation revenue pupil units shall be prorated based on the ratio of the number of days of student instruction to 170 days.

(e) The percentages in this subdivision must be based on the count of individual pupils and not on a building average or minimum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 11.

Minnesota Statutes 2014, section 126C.10, subdivision 2d, is amended to read:

Subd. 2d.

Declining enrollment revenue.

(a) A school district's declining enrollment revenue equals the greater of zero or the product of: (1) 28 percent of the formula allowance for that year and (2) the difference between the adjusted pupil units for the preceding year and the adjusted pupil units for the current year.

(b) Notwithstanding paragraph (a), for fiscal years 2015, 2016, and 2017 only, a pupil enrolled at the Crosswinds school shall not generate declining enrollment revenue for the district or charter school in which the pupil was last counted in average daily membership.

new text begin (c) Notwithstanding paragraph (a), for fiscal years 2017, 2018, and 2019 only, prekindergarten pupil units under section 126C.05, subdivision 1, paragraph (d), must be excluded from the calculation of declining enrollment revenue. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 12.

Minnesota Statutes 2015 Supplement, section 126C.10, subdivision 13a, is amended to read:

Subd. 13a.

Operating capital levy.

To obtain operating capital revenue, a district may levy an amount not more than the product of its operating capital revenue for the fiscal year times the lesser of one or the ratio of its adjusted net tax capacity per adjusted pupil unit to the operating capital equalizing factor. The operating capital equalizing factor equals deleted text begin $14,500 for fiscal years 2015 and 2016, $14,740deleted text end new text begin $15,740new text end for fiscal year 2017, deleted text begin $17,473deleted text end new text begin $19,972new text end for fiscal year 2018, and deleted text begin $20,510deleted text end new text begin $22,912new text end for fiscal year 2019 and later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 13.

Minnesota Statutes 2014, section 126C.10, subdivision 24, is amended to read:

Subd. 24.

Equity revenue.

(a) A school district qualifies for equity revenue if:

(1) the school district's adjusted pupil unit amount of basic revenue, transition revenue, and referendum revenue is less than the value of the school district at or immediately above the 95th percentile of school districts in its equity region for those revenue categories; and

(2) the school district's administrative offices are not located in a city of the first class on July 1, 1999.

(b) Equity revenue for a qualifying district that receives referendum revenue under section 126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's equity index computed under subdivision 27.

(c) Equity revenue for a qualifying district that does not receive referendum revenue under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil units for that year times $14.

(d) A school district's equity revenue is increased by the greater of zero or an amount equal to the district's adjusted pupil units times the difference between ten percent of the statewide average amount of referendum revenue per adjusted pupil unit for that year and the district's referendum revenue per adjusted pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for that year.

(e) A school district's equity revenue for a school district located in the metro equity region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.

(f)new text begin For fiscal years 2017, 2018, and 2019 for a school district not included in paragraph (e) a district's equity revenue equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.16. For fiscal year 2020 and later for a school district not included in paragraph (e) a district's equity revenue equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.new text end

new text begin (g)new text end A school district's additional equity revenue equals $50 times its adjusted pupil units.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2017 and later. new text end

Sec. 14.

Minnesota Statutes 2014, section 127A.353, subdivision 4, is amended to read:

Subd. 4.

Duties; powers.

(a) The school trust lands director shall:

(1) take an oath of office before assuming any duties as the director;

(2) evaluate the school trust land asset position;

(3) determine the estimated current and potential market value of school trust lands;

(4) advise the governor, Executive Council, commissioner of natural resources, and the Legislative Permanent School Fund Commission on the management of school trust lands, including:

(i) Department of Natural Resources school trust land management plans;

(ii) leases of school trust lands;

(iii) royalty agreements on school trust lands;

(iv) land sales and exchanges;

(v) cost certification; and

(vi) revenue generating options;

(5) propose to the Legislative Permanent School Fund Commission legislative changes that will improve the asset allocation of the school trust lands;

(6) develop a ten-year strategic plan and a 25-year framework for management of school trust lands, in conjunction with the commissioner of natural resources, that is updated every five years and implemented by the commissioner, with goals to:

(i) retain core real estate assets;

(ii) increase the value of the real estate assets and the cash flow from those assets;

(iii) rebalance the portfolio in assets with high performance potential and the strategic disposal of selected assets;

(iv) establish priorities for management actions; and

(v) balance revenue enhancement and resource stewardship;

(7) submit to the Legislative Permanent School Fund Commission for review an annual budget and management plan for the director; and

(8) keep the beneficiaries, governor, legislature, and the public informed about the work of the director by reporting to the Legislative Permanent School Fund Commission in a public meeting at least once during each calendar quarter.

(b) In carrying out the duties under paragraph (a), the school trust lands director shall have the authority to:

(1) direct and control money appropriated to the director;

(2) establish job descriptions and employ up to five employees in the unclassified service, within the limitations of money appropriated to the director;

(3) enter into interdepartmental agreements with any other state agency; deleted text begin anddeleted text end

new text begin (4) enter into joint powers agreements under chapter 471; new text end

new text begin (5) evaluate and initiate real estate development projects on school trust lands with the advice of the Legislative Permanent School Fund Commission in order to generate long-term economic return to the permanent school fund; new text end

new text begin (6) serve as temporary trustee of school trust land for school trust lands subject to proposed or active eminent domain proceedings; and new text end

deleted text begin (4)deleted text end new text begin (7)new text end submit recommendations on strategies for school trust land leases, sales, or exchanges to the commissioner of natural resources and the Legislative Permanent School Fund Commission.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 15.

Minnesota Statutes 2014, section 127A.51, is amended to read:

127A.51 STATEWIDE AVERAGE REVENUE.

By deleted text begin Octoberdeleted text end new text begin Decembernew text end 1 of each year the commissioner must estimate the statewide average adjusted general revenue per adjusted pupil unit and the disparity in adjusted general revenue among pupils and districts by computing the ratio of the 95th percentile to the fifth percentile of adjusted general revenue. The commissioner must provide that information to all districts.

If the disparity in adjusted general revenue as measured by the ratio of the 95th percentile to the fifth percentile increases in any year, the commissioner shall recommend to the legislature options for change in the general education formula that will limit the disparity in adjusted general revenue to no more than the disparity for the previous school year. The commissioner must submit the recommended options to the education committees of the legislature by deleted text begin January 15deleted text end new text begin February 1new text end .

For purposes of this section and section 126C.10, adjusted general revenue means the sum of basic revenue under section 126C.10, subdivision 2; referendum revenue under section 126C.17; new text begin local optional revenue under section 126C.10, subdivision 2e; new text end and equity revenue under section 126C.10, subdivisions 24a and 24b.

Sec. 16.

Laws 2015, First Special Session chapter 3, article 1, section 24, is amended to read:

Sec. 24.

COMPENSATORY REVENUE; INTERMEDIATE DISTRICT.

For the deleted text begin 2015-2016deleted text end new text begin 2016-2017new text end school year only, for an intermediate district formed under Minnesota Statutes, section 136D.41, the department must calculate compensatory revenue based on the October 1, deleted text begin 2014deleted text end new text begin 2015new text end , enrollment counts for the deleted text begin Southdeleted text end new text begin SouthWestnew text end Metro Educational Cooperative.

Sec. 17.

Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 2, is amended to read:

Subd. 2.

General education aid.

For general education aid under Minnesota Statutes, section 126C.13, subdivision 4:

$ deleted text begin 6,624,310,000 deleted text end
new text begin 6,649,435,000 new text end
..... 2016
$ deleted text begin 6,761,574,000 deleted text end
new text begin 6,815,372,000 new text end
..... 2017

The 2016 appropriation includes $622,908,000 for 2015 and deleted text begin $6,001,405,000deleted text end new text begin 6,026,524,000new text end for 2016.

The 2017 appropriation includes deleted text begin $638,812,000deleted text end new text begin $641,412,000new text end for 2016 and deleted text begin $6,122,762,000deleted text end new text begin $6,173,962,000new text end for 2017.

Sec. 18.

Laws 2015, First Special Session chapter 3, article 7, section 7, subdivision 2, is amended to read:

Subd. 2.

School lunch.

For school lunch aid according to Minnesota Statutes, section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

$ deleted text begin 15,661,000 deleted text end
new text begin 16,251,000 new text end
..... 2016
$ deleted text begin 15,818,000 deleted text end
new text begin 16,775,000 new text end
..... 2017

Sec. 19.

Laws 2015, First Special Session chapter 3, article 7, section 7, subdivision 3, is amended to read:

Subd. 3.

School breakfast.

For traditional school breakfast aid under Minnesota Statutes, section 124D.1158:

$ deleted text begin 9,731,000 deleted text end
new text begin 9,457,000 new text end
..... 2016
$ deleted text begin 10,361,000 deleted text end
new text begin 10,365,000 new text end
..... 2017

Sec. 20.

new text begin VOLUNTARY BOUNDARY ALIGNMENT; MOORHEAD AND DILWORTH-GLYNDON-FELTON. new text end

new text begin Subdivision 1. new text end

new text begin Boundary realignment allowed. new text end

new text begin The school boards of Independent School Districts Nos. 152, Moorhead, and 2164, Dilworth-Glyndon-Felton, may realign their shared district boundaries according to the provisions of this section. new text end

new text begin Subd. 2. new text end

new text begin Plan to establish new boundaries. new text end

new text begin (a) The school boards of Independent School Districts Nos. 152, Moorhead, and 2164, Dilworth-Glyndon-Felton, may jointly develop a plan to realign their shared school district boundaries over a period of years. new text end

new text begin (b) The plan must specify and identify each group of parcels that will be transferred and the method used to determine the year during which each set of parcels is transferred. The method of transfer may include an analysis of the relative tax base of the parcels to be transferred and may make the transfers of parcels effective upon the relationship in relative tax bases. new text end

new text begin (c) The written plan must be adopted by each school board after the board has allowed public testimony on the plan. new text end

new text begin (d) The plan must be filed with both the county auditor and the commissioner of education. new text end

new text begin (e) After adopting the plan, each school board must publish notice of the plan realigning district boundaries. The notice must include a general description of the area that will be affected by the proposed boundary alignment and the method by which the boundaries will be realigned. The notice must also be mailed to each property owner of record in the area proposed for realignment. new text end

new text begin Subd. 3. new text end

new text begin Bonded debt. new text end

new text begin As of the effective date of each exchange of parcels between the two school districts, for the next and subsequent tax years, the taxable property in the newly aligned parcel is taxable for a portion of the bonded debt of the school district to which the property is attached and is not taxable for the bonded debt from the school district from which the property is detached. new text end

new text begin Subd. 4. new text end

new text begin County auditor notified. new text end

new text begin After adoption of the plan, each school board must provide a copy of the plan to the county auditor. The county auditor may request any other necessary information from the school districts to effect the transfer of parcels between the school districts. Each year, the school districts must notify the county auditor of what block of parcels, if any, will be transferred between the two school districts. The county auditor must notify each affected property owner of the boundary change. new text end

new text begin Subd. 5. new text end

new text begin Report to commissioner of education. new text end

new text begin Upon adoption of the plan, the school boards must submit a copy of the plan to the commissioner of education. The districts must also provide any additional information necessary for computing school aids and levies to the commissioner of education in the form and manner requested by the department. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the school boards of Independent School Districts Nos. 152, Moorhead, and 2164, Dilworth-Glyndon-Felton, and their respective chief clerical officers timely comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end

Sec. 21.

new text begin GLENVILLE-EMMONS SCHOOL DISTRICT; OPERATING REFERENDUM ADJUSTMENT. new text end

new text begin Subdivision 1. new text end

new text begin Year first effective. new text end

new text begin Notwithstanding any law to the contrary, the operating referendum approved by the voters of Independent School District No. 2886, Glenville-Emmons, in April 2015, is first effective for fiscal year 2017 and may run for the number of years stated on the ballot. The total referendum authority for fiscal year 2017, including any board-approved authority, may not exceed the amount approved by the voters. new text end

new text begin Subd. 2. new text end

new text begin Documentation and process. new text end

new text begin The board of Independent School District No. 2886, Glenville-Emmons, must submit to the commissioner of education the following: new text end

new text begin (1) a unanimously adopted written resolution of the board at a public meeting authorizing the operating referendum to begin in fiscal year 2017; new text end

new text begin (2) documentation showing that the district's approved plan to eliminate its statutory operating debt is being followed; and new text end

new text begin (3) any other information requested by the commissioner. new text end

new text begin Subd. 3. new text end

new text begin Levy adjustment. new text end

new text begin Independent School District No. 2886, Glenville-Emmons, may certify the levy to accompany the fiscal year 2017 operating referendum over a three-year period beginning with taxes payable in 2017. new text end

Sec. 22.

new text begin EQUITY AID; FISCAL YEAR 2017. new text end

new text begin For fiscal year 2017 only, the entire amount of the equity revenue adjustment under section 13 is paid through state aid. new text end

ARTICLE 28

CHARTER SCHOOLS

Section 1.

Minnesota Statutes 2015 Supplement, section 124E.05, subdivision 1, is amended to read:

Subdivision 1.

Eligible authorizers.

The following organizations may authorize one or more charter schools:

(1) a school board, intermediate school district school board, or education district organized under sections 123A.15 to 123A.19;

(2) a charitable organization under section 501(c)(3) of the Internal Revenue Code of 1986, excluding a nonpublic sectarian or religious institution; any person other than a natural person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the nonpublic sectarian or religious institution; and any other charitable organization under this clause that in the federal IRS Form 1023, Part IV, describes activities indicating a religious purpose, that:

(i) deleted text begin is a member of the Minnesota Council of Nonprofits or the Minnesota Council on Foundations;deleted text end

deleted text begin (ii)deleted text end is registered with the attorney general's office; and

deleted text begin (iii)deleted text end new text begin (ii)new text end is incorporated in the state of Minnesota and has been operating continuously for at least five years but does not operate a charter school;

(3) a Minnesota private college, notwithstanding clause (2), that grants two- or four-year degrees and is registered with the Minnesota Office of Higher Education under chapter 136A; community college, state university, or technical college governed by the Board of Trustees of the Minnesota State Colleges and Universities; or the University of Minnesota;

(4) a nonprofit corporation subject to chapter 317A, described in section 317A.905, and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code of 1986, may authorize one or more charter schools if the charter school has operated for at least three years under a different authorizer and if the nonprofit corporation has existed for at least 25 years; or

(5) single-purpose authorizers formed as charitable, nonsectarian organizations under section 501(c)(3) of the Internal Revenue Code of 1986 and incorporated in the state of Minnesota under chapter 317A as a corporation with no members or under section 322B.975 as a nonprofit limited liability company for the sole purpose of chartering schools.

Sec. 2.

Minnesota Statutes 2015 Supplement, section 124E.05, subdivision 4, is amended to read:

Subd. 4.

Application content.

new text begin (a)new text end An applicant must include in its application to the commissioner to be an approved authorizer at least the following:

(1) how chartering schools is a way for the organization to carry out its mission;

deleted text begin (2) a description of the capacity of the organization to serve as an authorizer, deleted text end deleted text begin including the personnel who will perform the authorizing duties, their qualifications, the deleted text end deleted text begin amount of time they will be assigned to this responsibility, and the financial resources deleted text end deleted text begin allocated by the organization to this responsibility; deleted text end

new text begin (2) a description of the capacity of the organization to serve as an authorizer, including the positions allocated to authorizing duties, the qualifications for those positions, the full-time equivalencies of those positions, and the financial resources available to fund the positions; new text end

(3) a description of the application and review process the authorizer will use to make decisions regarding the granting of charters;

(4) a description of the type of contract it will arrange with the schools it charters that meets the provisions of section 124E.10;

(5) the process to be used for providing ongoing oversight of the school consistent with the contract expectations specified in clause (4) that assures that the schools chartered are complying with both the provisions of applicable law and rules, and with the contract;

(6) a description of the criteria and process the authorizer will use to grant expanded applications under section 124E.06, subdivision 5;

(7) the process for making decisions regarding the renewal or termination of the school's charter based on evidence that demonstrates the academic, organizational, and financial competency of the school, including its success in increasing student achievement and meeting the goals of the charter school agreement; and

(8) an assurance specifying that the organization is committed to serving as an authorizer for the full five-year term.

new text begin (b) Notwithstanding paragraph (a), an authorizer that is a school district may satisfy the requirements of paragraph (a), clauses (1) and (2), and any requirement governing a conflict of interest between an authorizer and its charter schools or ongoing evaluation or continuing education of an administrator or other professional support staff by submitting to the commissioner a written promise to comply with the requirements. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2017. new text end

Sec. 3.

Minnesota Statutes 2015 Supplement, section 124E.05, subdivision 5, is amended to read:

Subd. 5.

Review by commissioner.

new text begin (a) new text end The commissioner shall review an authorizer's performance every five years in a manner and form determined by the commissionernew text begin , subject to paragraphs (b) and (c),new text end and may review an authorizer's performance more frequently at the commissioner's own initiative or at the request of a charter school operator, charter school board member, or other interested party. The commissioner, after completing the review, shall transmit a report with findings to the authorizer.

new text begin (b) Consistent with this subdivision, the commissioner must: new text end

new text begin (1) use criteria appropriate to the authorizer and the schools it charters to review the authorizer's performance; and new text end

new text begin (2) consult with authorizers, charter school operators, and other charter school stakeholders in developing review criteria under this paragraph. new text end

new text begin (c) The commissioner's form must use existing department data on the authorizer to minimize duplicate reporting to the extent practicable. When reviewing an authorizer's performance under this subdivision, the commissioner must not: new text end

new text begin (1) fail to credit; new text end

new text begin (2) withhold points; or new text end

new text begin (3) otherwise penalize an authorizer for failing to charter additional schools or for the absence of complaints against the authorizer's current portfolio of charter schools. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 4.

Minnesota Statutes 2015 Supplement, section 124E.05, subdivision 7, is amended to read:

Subd. 7.

Withdrawal.

If the governing board of an approved authorizer votes to withdraw as an approved authorizer for a reason unrelated to any cause under section 124E.10, subdivision 4, the authorizer must notify all its chartered schools and the commissioner in writing by deleted text begin July 15deleted text end new text begin March 1new text end of its intent to withdraw as an authorizer on June 30 in the next calendar year, regardless of when the authorizer's five-year term of approval ends. The commissioner may approve the transfer of a charter school to a new authorizer under deleted text begin this subdivision after the new authorizer submits an affidavit to the commissionerdeleted text end new text begin section 124E.10, subdivision 5new text end .

Sec. 5.

Minnesota Statutes 2015 Supplement, section 124E.10, subdivision 1, is amended to read:

Subdivision 1.

Contents.

(a) The authorization for a charter school must be in the form of a written contract signed by the authorizer and the board of directors of the charter school. The contract must be completed within 45 business days of the commissioner's approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a copy of the signed charter contract within ten business days of its execution. The contract for a charter school must be in writing and contain at least the following:

(1) a declaration that the charter school will carry out the primary purpose in section 124E.01, subdivision 1, and how the school will report its implementation of the primary purpose;

(2) a declaration of the additional purpose or purposes in section 124E.01, subdivision 1, that the school intends to carry out and how the school will report its implementation of those purposes;

(3) a description of the school program and the specific academic and nonacademic outcomes that pupils must achieve;

(4) a statement of admission policies and procedures;

(5) a governance, management, and administration plan for the school;

(6) signed agreements from charter school board members to comply with all federal and state laws governing organizational, programmatic, and financial requirements applicable to charter schools;

(7) the criteria, processes, and procedures that the authorizer will use to monitor and evaluate the fiscal, operational, and academic performance consistent with subdivision 3, paragraphs (a) and (b);

(8) for contract renewal, the formal written performance evaluation of the school that is a prerequisite for reviewing a charter contract under subdivision 3;

(9) types and amounts of insurance liability coverage to be obtained by the charter school, consistent with section 124E.03, subdivision 2, paragraph (d);

(10) consistent with section 124E.09, paragraph (d), a provision to indemnify and hold harmless the authorizer and its officers, agents, and employees from any suit, claim, or liability arising from any operation of the charter school, and the commissioner and department officers, agents, and employees notwithstanding section 3.736;

(11) the term of the initial contract, which may be up to five years plus deleted text begin an additional deleted text end new text begin anew text end preoperational planning deleted text begin yeardeleted text end new text begin periodnew text end , and up to five years for a renewed contract or a contract with a new authorizer after a transfer of authorizers, if warranted by the school's academic, financial, and operational performance;

(12) how the board of directors or the operators of the charter school will provide special instruction and services for children with a disability under sections 125A.03 to 125A.24, and 125A.65, a description of the financial parameters within which the charter school will operate to provide the special instruction and services to children with a disability;

(13) the specific conditions for contract renewal that identify performance of all students under the primary purpose of section 124E.01, subdivision 1, as the most important factor in determining contract renewal;

(14) the additional purposes under section 124E.01, subdivision 1, and related performance obligations under clause (7) contained in the charter contract as additional factors in determining contract renewal; and

(15) the plan for an orderly closing of the school under chapter 317A, whether the closure is a termination for cause, a voluntary termination, or a nonrenewal of the contract, that includes establishing the responsibilities of the school board of directors and the authorizer and notifying the commissioner, authorizer, school district in which the charter school is located, and parents of enrolled students about the closure, information and assistance sufficient to enable the student to re-enroll in another school, the transfer of student records under section 124E.03, subdivision 5, paragraph (b), and procedures for closing financial operations.

(b) A charter school must design its programs to at least meet the outcomes adopted by the commissioner for public school studentsnew text begin , including world's best workforce goals under section 120B.11, subdivision 1new text end . In the absence of the commissioner's requirements, the school must meet the outcomes contained in the contract with the authorizer. The achievement levels of the outcomes contained in the contract may exceed the achievement levels of any outcomes adopted by the commissioner for public school students.

Sec. 6.

Minnesota Statutes 2015 Supplement, section 124E.10, subdivision 5, is amended to read:

Subd. 5.

Mutual nonrenewal.

If the authorizer and the charter school board of directors mutually agree not to renew the contract, new text begin or if the governing board of an approved authorizer votes to withdraw as an approved authorizer for a reason unrelated to any cause under subdivision 4, new text end a change in authorizers is allowed. The authorizer and the school board must jointly submit a written and signed letter of their intent to the commissioner to mutually not renew the contract. The authorizer that is a party to the existing contract must inform the proposed authorizer about the fiscal, operational, and student performance status of the school, deleted text begin as well as anydeleted text end new text begin including unmet contract outcomes and othernew text end outstanding contractual obligations that exist. The charter contract between the proposed authorizer and the school must identify and provide a plan to address any outstanding obligations from the previous contract. The proposed contract must be submitted at least 105 business days before the end of the existing charter contract. The commissioner shall have 30 business days to review and make a determination. The proposed authorizer and the school shall have 15 business days to respond to the determination and address any issues identified by the commissioner. A final determination by the commissioner shall be made no later than 45 business days before the end of the current charter contract. If no change in authorizer is approved, the school and the current authorizer may withdraw their letter of nonrenewal and enter into a new contract. If the transfer of authorizers is not approved and the current authorizer and the school do not withdraw their letter and enter into a new contract, the school must be dissolved according to applicable law and the terms of the contract.

Sec. 7.

Minnesota Statutes 2015 Supplement, section 124E.16, subdivision 2, is amended to read:

Subd. 2.

Annual public reports.

(a) A charter school must publish an annual report approved by the board of directors. The annual report must at least include information on school enrollment, student attrition, governance and management, staffing, finances, academic performance, innovative practices and implementation, and future plans. A charter school may combine this report with the reporting required under section 120B.11. A charter school must post the annual report on the school's official Web site. A charter school must also distribute the annual report by publication, mail, or electronic means to its authorizer, school employees, and parents and legal guardians of students enrolled in the charter school. The reports are public data under chapter 13.

(b) deleted text begin The commissioner shall establish specifications fordeleted text end new text begin An authorizer must submitnew text end an deleted text begin authorizer'sdeleted text end annual public report deleted text begin thatdeleted text end new text begin in a manner specified by the commissioner by January 15 for the previous school year ending June 30 that shall at least include key indicators of school academic, operational, and financial performance. The reportnew text end is part of the system to evaluate authorizer performance under section 124E.05, subdivision 5. deleted text begin The report shall at least include key indicators of school academic, operational, and financial performance.deleted text end

Sec. 8.

Minnesota Statutes 2014, section 127A.45, subdivision 6a, is amended to read:

Subd. 6a.

Cash flow adjustment.

The board of directors of any deleted text begin charter school serving fewer than 200 students where the percent of students eligible for special education services equals at least 90 percent of the charter school's total enrollment deleted text end new text begin eligible special education charter school under section 124E.21, subdivision 2,new text end may request that the commissioner of education accelerate the school's cash flow under this section. The commissioner must approve a properly submitted request within 30 days of its receipt. The commissioner must accelerate the school's regular special education aid payments according to the schedule in the school's request and modify the payments to the school under subdivision 3 accordingly. A school must not receive current payments of regular special education aid exceeding 90 percent of its estimated aid entitlement for the fiscal year. The commissioner must delay the special education aid payments to all other school districts and charter schools in proportion to each district or charter school's total share of regular special education aid such that the overall aid payment savings from the aid payment shift remains unchanged for any fiscal year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 9.

Laws 2015, First Special Session chapter 3, article 4, section 4, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective the day following final enactment except the provision under paragraph (g) allowing prekindergarten deaf or hard-of-hearing pupils to enroll in a charter school is effective deleted text begin only if the commissioner of education determines there is no added cost attributable to the pupildeleted text end new text begin for the 2016-2017 school year and laternew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 10.

Laws 2015, First Special Session chapter 3, article 4, section 9, subdivision 2, is amended to read:

Subd. 2.

Charter school building lease aid.

For building lease aid under Minnesota Statutes, section deleted text begin 124D.11, subdivision 4deleted text end new text begin 124E.22new text end :

$ deleted text begin 66,787,000 deleted text end
new text begin 63,540,000 new text end
..... 2016
$ deleted text begin 73,603,000 deleted text end
new text begin 70,132,000 new text end
..... 2017

The 2016 appropriation includes $6,032,000 for 2015 and deleted text begin $60,755,000deleted text end new text begin $57,508,000new text end for 2016.

The 2017 appropriation includes deleted text begin $6,750,000deleted text end new text begin $6,389,000new text end for 2016 and deleted text begin $66,853,000deleted text end new text begin $63,743,000new text end for 2017.

ARTICLE 29

SPECIAL EDUCATION

Section 1.

Minnesota Statutes 2015 Supplement, section 120B.125, is amended to read:

120B.125 PLANNING FOR STUDENTS' SUCCESSFUL TRANSITION TO POSTSECONDARY EDUCATION AND EMPLOYMENT; PERSONAL LEARNING PLANS.

(a) Consistent with sections 120B.13, 120B.131, 120B.132, 120B.14, 120B.15, 120B.30, subdivision 1, paragraph (c), 125A.08, and other related sections, school districts, beginning in the 2013-2014 school year, must assist all students by no later than grade 9 to explore their educational, college, and career interests, aptitudes, and aspirations and develop a plan for a smooth and successful transition to postsecondary education or employment. All students' plans must:

(1) provide a comprehensive plan to prepare for and complete a career and college ready curriculum by meeting state and local academic standards and developing career and employment-related skills such as team work, collaboration, creativity, communication, critical thinking, and good work habits;

(2) emphasize academic rigor and high expectations;

(3) help students identify interests, aptitudes, aspirations, and personal learning styles that may affect their career and college ready goals and postsecondary education and employment choices;

(4) set appropriate career and college ready goals with timelines that identify effective means for achieving those goals;

(5) help students access education and career options;

(6) integrate strong academic content into career-focused courses and applied and experiential learning opportunities and integrate relevant career-focused courses and applied and experiential learning opportunities into strong academic content;

(7) help identify and access appropriate counseling and other supports and assistance that enable students to complete required coursework, prepare for postsecondary education and careers, and obtain information about postsecondary education costs and eligibility for financial aid and scholarship;

(8) help identify collaborative partnerships among prekindergarten through grade 12 schools, postsecondary institutions, economic development agencies, and local and regional employers that support students' transition to postsecondary education and employment and provide students with applied and experiential learning opportunities; and

(9) be reviewed and revised at least annually by the student, the student's parent or guardian, and the school or district to ensure that the student's course-taking schedule keeps the student making adequate progress to meet state and local academic standards and high school graduation requirements and with a reasonable chance to succeed with employment or postsecondary education without the need to first complete remedial course work.

(b) A school district may develop grade-level curricula or provide instruction that introduces students to various careers, but must not require any curriculum, instruction, or employment-related activity that obligates an elementary or secondary student to involuntarily select or pursue a career, career interest, employment goals, or related job training.

(c) Educators must possess the knowledge and skills to effectively teach all English learners in their classrooms. School districts must provide appropriate curriculum, targeted materials, professional development opportunities for educators, and sufficient resources to enable English learners to become career and college ready.

(d) When assisting students in developing a plan for a smooth and successful transition to postsecondary education and employment, districts must recognize the unique possibilities of each student and ensure that the contents of each student's plan reflect the student's unique talents, skills, and abilities as the student grows, develops, and learns.

new text begin (e) If a student with a disability has an individualized education program (IEP) or standardized written plan that meets the plan components of this section, the IEP satisfies the requirement and no additional transition plan is needed. new text end

Sec. 2.

Minnesota Statutes 2014, section 122A.31, subdivision 3, is amended to read:

Subd. 3.

Qualified interpreters.

The Department of Education deleted text begin and the resource center:deleted text end new text begin state specialist fornew text end deaf and deleted text begin hard of hearingdeleted text end new text begin hard-of-hearingnew text end shall work with existing interpreter/transliterator training programs, other training/educational institutions, and the regional service centers to ensure that ongoing staff development training for educational interpreters/transliterators is provided throughout the state.

Sec. 3.

Minnesota Statutes 2014, section 124D.15, subdivision 15, is amended to read:

Subd. 15.

Eligibility.

A child is eligible to participate in a school readiness program if the child:

(1) is at least three years old on September 1;

(2) has completed health and developmental screening within 90 days of program enrollment under sections 121A.16 to 121A.19; and

(3) has one or more of the following risk factors:

(i) qualifies for free or reduced-price lunch;

(ii) is an English learner;

(iii) is homeless;

(iv) has an individualized education program (IEP) or deleted text begin an individual interagency intervention plan (IIIP)deleted text end new text begin standardized written plannew text end ;

(v) is identified, through health and developmental screenings under sections 121A.16 to 121A.19, with a potential risk factor that may influence learning; or

(vi) is defined as deleted text begin at-riskdeleted text end new text begin at risknew text end by the school district.

Sec. 4.

Minnesota Statutes 2015 Supplement, section 125A.08, is amended to read:

125A.08 INDIVIDUALIZED EDUCATION PROGRAMS.

(a) At the beginning of each school year, each school district shall have in effect, for each child with a disability, an individualized education program.

(b) As defined in this section, every district must ensure the following:

(1) all students with disabilities are provided the special instruction and services which are appropriate to their needs. Where the individualized education program team has determined appropriate goals and objectives based on the student's needs, including the extent to which the student can be included in the least restrictive environment, and where there are essentially equivalent and effective instruction, related services, or assistive technology devices available to meet the student's needs, cost to the district may be among the factors considered by the team in choosing how to provide the appropriate services, instruction, or devices that are to be made part of the student's individualized education program. The individualized education program team shall consider and may authorize services covered by medical assistance according to section 256B.0625, subdivision 26. new text begin Before a school district evaluation team makes a determination of other health disability under Minnesota Rules, part 3525.1335, subparts 1 and 2, item A, subitem (1), the evaluation team must seek written documentation of the student's medically diagnosed chronic or acute health condition signed by a licensed physician or a licensed health care provider acting within the scope of the provider's practice. new text end The student's needs and the special education instruction and services to be provided must be agreed upon through the development of an individualized education program. The program must address the student's need to develop skills to live and work as independently as possible within the community. The individualized education program team must consider positive behavioral interventions, strategies, and supports that address behavior needs for children. During grade 9, the program must address the student's needs for transition from secondary services to postsecondary education and training, employment, community participation, recreation, and leisure and home living. In developing the program, districts must inform parents of the full range of transitional goals and related services that should be considered. The program must include a statement of the needed transition services, including a statement of the interagency responsibilities or linkages or both before secondary services are concludednew text begin . If the individualized education program meets the plan components in section 120B.125, the individualized education program satisfies the requirement and no additional transition plan is needednew text end ;

(2) children with a disability under age five and their families are provided special instruction and services appropriate to the child's level of functioning and needs;

(3) children with a disability and their parents or guardians are guaranteed procedural safeguards and the right to participate in decisions involving identification, assessment including assistive technology assessment, and educational placement of children with a disability;

(4) eligibility and needs of children with a disability are determined by an initial evaluation or reevaluation, which may be completed using existing data under United States Code, title 20, section 33, et seq.;

(5) to the maximum extent appropriate, children with a disability, including those in public or private institutions or other care facilities, are educated with children who are not disabled, and that special classes, separate schooling, or other removal of children with a disability from the regular educational environment occurs only when and to the extent that the nature or severity of the disability is such that education in regular classes with the use of supplementary services cannot be achieved satisfactorily;

(6) in accordance with recognized professional standards, testing and evaluation materials, and procedures used for the purposes of classification and placement of children with a disability are selected and administered so as not to be racially or culturally discriminatory; and

(7) the rights of the child are protected when the parents or guardians are not known or not available, or the child is a ward of the state.

(c) For all paraprofessionals employed to work in programs whose role in part is to provide direct support to students with disabilities, the school board in each district shall ensure that:

(1) before or beginning at the time of employment, each paraprofessional must develop sufficient knowledge and skills in emergency procedures, building orientation, roles and responsibilities, confidentiality, vulnerability, and reportability, among other things, to begin meeting the needs, especially disability-specific and behavioral needs, of the students with whom the paraprofessional works;

(2) annual training opportunities are required to enable the paraprofessional to continue to further develop the knowledge and skills that are specific to the students with whom the paraprofessional works, including understanding disabilities, the unique and individual needs of each student according to the student's disability and how the disability affects the student's education and behavior, following lesson plans, and implementing follow-up instructional procedures and activities; and

(3) a districtwide process obligates each paraprofessional to work under the ongoing direction of a licensed teacher and, where appropriate and possible, the supervision of a school nurse.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 5.

Minnesota Statutes 2015 Supplement, section 125A.083, is amended to read:

125A.083 STUDENT INFORMATION SYSTEMS; TRANSFERRING RECORDS.

new text begin (a) new text end To efficiently and effectively meet federal and state compliance and accountability requirements using an online case management reporting system, new text begin beginning July 1, 2018, a new text end school deleted text begin districtsdeleted text end new text begin districtnew text end may contract only for a student information system that is Schools Interoperability Framework compliant deleted text begin and compatible with thedeleted text end new text begin .new text end

new text begin (b) Beginning on July 1 of the fiscal year following the year that the commissioner of education certifies to the legislature under paragraph (c) that a compatible compliant system exists, a school district must use annew text end online system for compliance reporting under section 125A.085 deleted text begin beginning in the 2018-2019 school year and laterdeleted text end . A district's information system under this section must facilitate the seamless transfer of student records for a student with disabilities who transfers between school districts, including records containing the student's evaluation report, service plan, and other due process forms and information, regardless of what information system any one district uses.

new text begin (c) As a part of the annual report required under section 125A.085, paragraph (f), the commissioner must specify whether a compatible compliant system exists and if so, list each vendor's systems that meet the criteria in paragraph (b). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 6.

Minnesota Statutes 2014, section 125A.091, subdivision 11, is amended to read:

Subd. 11.

Facilitated team meeting.

A facilitated team meeting is an IEP, IFSP, or deleted text begin IIIPdeleted text end new text begin multiagency new text end team meeting led by an impartial state-provided facilitator to promote effective communication and assist a team in developing an individualized education program.

Sec. 7.

Minnesota Statutes 2015 Supplement, section 125A.0942, subdivision 3, is amended to read:

Subd. 3.

Physical holding or seclusion.

(a) Physical holding or seclusion may be used only in an emergency. A school that uses physical holding or seclusion shall meet the following requirements:

(1) physical holding or seclusion is the least intrusive intervention that effectively responds to the emergency;

(2) physical holding or seclusion is not used to discipline a noncompliant child;

(3) physical holding or seclusion ends when the threat of harm ends and the staff determines the child can safely return to the classroom or activity;

(4) staff directly observes the child while physical holding or seclusion is being used;

(5) each time physical holding or seclusion is used, the staff person who implements or oversees the physical holding or seclusion documents, as soon as possible after the incident concludes, the following information:

(i) a description of the incident that led to the physical holding or seclusion;

(ii) why a less restrictive measure failed or was determined by staff to be inappropriate or impractical;

(iii) the time the physical holding or seclusion began and the time the child was released; and

(iv) a brief record of the child's behavioral and physical status;

(6) the room used for seclusion must:

(i) be at least six feet by five feet;

(ii) be well lit, well ventilated, adequately heated, and clean;

(iii) have a window that allows staff to directly observe a child in seclusion;

(iv) have tamperproof fixtures, electrical switches located immediately outside the door, and secure ceilings;

(v) have doors that open out and are unlocked, locked with keyless locks that have immediate release mechanisms, or locked with locks that have immediate release mechanisms connected with a fire and emergency system; and

(vi) not contain objects that a child may use to injure the child or others;new text begin andnew text end

(7) before using a room for seclusion, a school must:

(i) receive written notice from local authorities that the room and the locking mechanisms comply with applicable building, fire, and safety codes; and

(ii) register the room with the commissioner, who may view that roomdeleted text begin ; anddeleted text end new text begin .new text end

deleted text begin (8) until August 1, 2015, a school district may use prone restraints with children age five or older if: deleted text end

deleted text begin (i) the district has provided to the department a list of staff who have had specific training on the use of prone restraints; deleted text end

deleted text begin (ii) the district provides information on the type of training that was provided and by whom; deleted text end

deleted text begin (iii) only staff who received specific training use prone restraints; deleted text end

deleted text begin (iv) each incident of the use of prone restraints is reported to the department within five working days on a form provided by the department; and deleted text end

deleted text begin (v) the district, before using prone restraints, must review any known medical or psychological limitations that contraindicate the use of prone restraints. deleted text end

deleted text begin The department must collect data on districts' use of prone restraints and publish the data in a readily accessible format on the department's Web site on a quarterly basis. deleted text end

(b) By February 1, 2015, and annually thereafter, stakeholders may, as necessary, recommend to the commissioner specific and measurable implementation and outcome goals for reducing the use of restrictive procedures and the commissioner must submit to the legislature a report on districts' progress in reducing the use of restrictive procedures that recommends how to further reduce these procedures and eliminate the use of deleted text begin prone restraintsdeleted text end new text begin seclusionnew text end . The statewide plan includes the following components: measurable goals; the resources, training, technical assistance, mental health services, and collaborative efforts needed to significantly reduce districts' use of deleted text begin prone restraintsdeleted text end new text begin seclusionnew text end ; and recommendations to clarify and improve the law governing districts' use of restrictive procedures. The commissioner must consult with interested stakeholders when preparing the report, including representatives of advocacy organizations, special education directors, teachers, paraprofessionals, intermediate school districts, school boards, day treatment providers, county social services, state human services department staff, mental health professionals, and autism experts. deleted text begin By June 30deleted text end new text begin Beginning with the 2016-2017 school year, in a form and manner determined by the commissioner, districts must report data quarterly to the department by January 15, April 15, July 15, and October 15 about individual students who have been secluded. By July 15new text end each year, districts must report summary data on their use of restrictive procedures to the departmentnew text begin for the prior school year, July 1 through June 30new text end , in a form and manner determined by the commissioner. The summary data must include information about the use of restrictive procedures, including use of reasonable force under section 121A.582.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2016-2017 school year and later. new text end

Sec. 8.

Minnesota Statutes 2014, section 125A.0942, subdivision 4, is amended to read:

Subd. 4.

Prohibitions.

The following actions or procedures are prohibited:

(1) engaging in conduct prohibited under section 121A.58;

(2) requiring a child to assume and maintain a specified physical position, activity, or posture that induces physical pain;

(3) totally or partially restricting a child's senses as punishment;

(4) presenting an intense sound, light, or other sensory stimuli using smell, taste, substance, or spray as punishment;

(5) denying or restricting a child's access to equipment and devices such as walkers, wheelchairs, hearing aids, and communication boards that facilitate the child's functioning, except when temporarily removing the equipment or device is needed to prevent injury to the child or others or serious damage to the equipment or device, in which case the equipment or device shall be returned to the child as soon as possible;

(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or physical abuse under section 626.556;

(7) withholding regularly scheduled meals or water;

(8) denying access to bathroom facilities; deleted text begin anddeleted text end

(9) physical holding that restricts or impairs a child's ability to breathe, restricts or impairs a child's ability to communicate distress, places pressure or weight on a child's head, throat, neck, chest, lungs, sternum, diaphragm, back, or abdomen, or results in straddling a child's torsodeleted text begin .deleted text end new text begin ; andnew text end

new text begin (10) prone restraint. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 9.

Minnesota Statutes 2015 Supplement, section 125A.11, subdivision 1, is amended to read:

Subdivision 1.

Nonresident tuition rate; other costs.

(a) For fiscal year 2015 and later, when a school district provides special instruction and services for a pupil with a disability as defined in section 125A.02 outside the district of residence, excluding a pupil for whom an adjustment to special education aid is calculated according to section 127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the resident district must be reduced by an amount equal to (1) the actual cost of providing special instruction and services to the pupil, including a proportionate amount for special transportation deleted text begin and unreimbursed building lease and debt service costs for facilities used primarily for special educationdeleted text end , plus (2) the amount of general education revenuenew text begin , excluding local optional revenue, plus local optional aidnew text end and referendum equalization aid attributable to that pupil, calculated using the resident district's average general education revenue and referendum equalization aid per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue, minus (3) the amount of special education aid for children with a disability under section 125A.76 received on behalf of that child, minus (4) if the pupil receives special instruction and services outside the regular classroom for more than 60 percent of the school day, the amount of general education revenue and referendum equalization aid, excluding portions attributable to district and school administration, district support services, operations and maintenance, capital expenditures, and pupil transportation, attributable to that pupil for the portion of time the pupil receives special instruction and services outside of the regular classroom, calculated using the resident district's average general education revenue and referendum equalization aid per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue and the serving district's basic skills revenue, elementary sparsity revenue and secondary sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils served by a cooperative unit without a fiscal agent school district, the general education revenue and referendum equalization aid attributable to a pupil must be calculated using the resident district's average general education revenue and referendum equalization aid excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity revenue. Special education aid paid to the district or cooperative providing special instruction and services for the pupil must be increased by the amount of the reduction in the aid paid to the resident district. deleted text begin Amounts paid to cooperatives under this subdivision and section 127A.47, subdivision 7, shall be recognized and reported as revenues and expenditures on the resident school district's books of account under sections 123B.75 and 123B.76.deleted text end If the resident district's special education aid is insufficient to make the full adjustment, the remaining adjustment shall be made to other state aid due to the district.

(b) Notwithstanding paragraph (a), when a charter school receiving special education aid under section 124E.21, subdivision 3, provides special instruction and services for a pupil with a disability as defined in section 125A.02, excluding a pupil for whom an adjustment to special education aid is calculated according to section 127A.46, subdivision 7, paragraphs (b) to (e), special education aid paid to the resident district must be reduced by an amount equal to that calculated under paragraph (a) as if the charter school received aid under section 124E.21, subdivision 1. Notwithstanding paragraph (a), special education aid paid to the charter school providing special instruction and services for the pupil must not be increased by the amount of the reduction in the aid paid to the resident district.

(c) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs (b) to (d)deleted text begin ,deleted text end new text begin :new text end

new text begin (1) an intermediate district or a special education cooperative may recover unreimbursed costs of serving pupils with a disability, including building lease, debt service, and indirect costs necessary for the general operation of the organization, by billing membership fees and nonmember access fees to the resident district; new text end

new text begin (2)new text end a charter school where more than 30 percent of enrolled students receive special education and related services, a site approved under section 125A.515, an intermediate district, new text begin or new text end a special education cooperativedeleted text begin , or a school district that served as the applicant agency for a group of school districts for federal special education aids for fiscal year 2006deleted text end may apply to the commissioner for authority to charge the resident district an additional amount to recover any remaining unreimbursed costs of serving pupils with a disabilitydeleted text begin .deleted text end new text begin ;new text end

new text begin (3)new text end the new text begin billing under clause (1) or new text end application new text begin under clause (2) new text end must include a description of the costs and the calculations used to determine the unreimbursed portion to be charged to the resident district. Amounts approved by the commissioner under deleted text begin this paragraphdeleted text end new text begin clause (2)new text end must be included in the deleted text begin tuition billings ordeleted text end aid adjustments under paragraph (a), or section 127A.47, subdivision 7, paragraphs (b) to (d), as applicable.

(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraph (b), "general education revenue and referendum equalization aid" means the sum of the general education revenue according to section 126C.10, subdivision 1, excluding the local optional levy according to section 126C.10, subdivision 2e, paragraph (c), plus the referendum equalization aid according to section 126C.17, subdivision 7.

Sec. 10.

Minnesota Statutes 2015 Supplement, section 125A.21, subdivision 3, is amended to read:

Subd. 3.

Use of reimbursements.

deleted text begin Of the reimbursements received, districts maydeleted text end new text begin School districts must reserve third-party revenue and must spend the reimbursements received only tonew text end :

(1) retain an amount sufficient to compensate the district for its administrative costs of obtaining reimbursements;

(2) regularly obtain from education- and health-related entities training and other appropriate technical assistance designed to improve the district's ability to access third-party payments for individualized education program or individualized family service plan health-related services; or

(3) reallocate reimbursements for the benefit of students with individualized education programs or individualized family service plans in the district.

Sec. 11.

Minnesota Statutes 2015 Supplement, section 125A.63, subdivision 4, is amended to read:

Subd. 4.

Advisory committees.

(a) The commissioner shall establish advisory committees for the deaf and hard-of-hearing and for the blind and visually impaired. The advisory committees shall develop recommendations and submit an annual report to the commissioner on the form and in the manner prescribed by the commissioner.

(b) The advisory committees for the deaf and hard of hearing and for the blind and visually impaired shall meet periodically at least four times per year deleted text begin anddeleted text end new text begin . The committees must new text end each new text begin review, approve, and new text end submit deleted text begin an annualdeleted text end new text begin a biennialnew text end report to the commissioner, the education policy and finance committees of the legislature, and the Commission of Deaf, DeafBlind, and Hard-of-Hearing Minnesotans. The reports must, at least:

(1) identify and report the aggregate, data-based education outcomes for children with the primary disability classification of deaf and hard of hearing or of blind and visually impaired, consistent with the commissioner's child count reporting practices, the commissioner's state and local outcome data reporting system by district and region, and the school performance report cards under section 120B.36, subdivision 1; and

(2) describe the implementation of a data-based plan for improving the education outcomes of deaf and hard of hearing or blind and visually impaired children that is premised on evidence-based best practices, and provide a cost estimate for ongoing implementation of the plan.

Sec. 12.

Minnesota Statutes 2015 Supplement, section 125A.76, subdivision 2c, is amended to read:

Subd. 2c.

Special education aid.

(a) For fiscal year 2014 and fiscal year 2015, a district's special education aid equals the sum of the district's special education aid under subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and the district's excess cost aid under section 125A.79, subdivision 7.

(b) For fiscal year 2016 and later, a district's special education aid equals the sum of the district's special education initial aid under subdivision 2a and the district's excess cost aid under section 125A.79, subdivision 5.

(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for a school district must not exceed the sum of the special education aid the district would have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, and the product of the district's average daily membership served and the special education aid increase limit.

(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education aid for a school district must not exceed the sum of: (i) the product of the district's average daily membership served and the special education aid increase limit and (ii) the product of the sum of the special education aid the district would have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of the district's average daily membership served for the current fiscal year to the district's average daily membership served for fiscal year 2016, and the program growth factor.

(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special education aid for a school district, not including a charter school or cooperative unit as defined in section 123A.24, must not be less than the lesser of (1) the district's nonfederal special education expenditures for that fiscal year or (2) the product of the sum of the special education aid the district would have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of the district's adjusted daily membership for the current fiscal year to the district's average daily membership for fiscal year 2016, and the program growth factor.

(f) Notwithstanding subdivision 2a and section 125A.79, a charter school in its first year of operation shall generate special education aid based on current year data. A newly formed cooperative unit as defined in section 123A.24 may apply to the commissioner for approval to generate special education aid for its first year of operation based on current year data, with an offsetting adjustment to the prior year data used to calculate aid for programs at participating school districts or previous cooperatives that were replaced by the new cooperative.

new text begin (g) The department shall establish procedures through the uniform financial accounting and reporting system to identify and track all revenues generated from third-party billings as special education revenue at the school district level; include revenue generated from third-party billings as special education revenue in the annual cross-subsidy report; and exclude third-party revenue from calculation of excess cost aid to the districts. new text end

Sec. 13.

Minnesota Statutes 2015 Supplement, section 125A.79, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this section, the definitions in this subdivision apply.

(a) "Unreimbursed old formula special education expenditures" means:

(1) old formula special education expenditures for the prior fiscal year; minus

(2) for fiscal years 2014 and 2015, the sum of the special education aid under section 125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education initial aid under section 125A.76, subdivision 2a; minus

(3) for fiscal year 2016 and later, the amount of general education revenue, excluding local optional revenue, plus local optional aid and referendum equalization aid for the prior fiscal year attributable to pupils receiving special instruction and services outside the regular classroom for more than 60 percent of the school day for the portion of time the pupils receive special instruction and services outside the regular classroom, excluding portions attributable to district and school administration, district support services, operations and maintenance, capital expenditures, and pupil transportation.

(b) "Unreimbursed nonfederal special education expenditures" means:

(1) nonfederal special education expenditures for the prior fiscal year; minus

(2) special education initial aid under section 125A.76, subdivision 2a; minus

(3) the amount of general education revenuenew text begin , excluding local optional revenue, plus local optional aid,new text end and referendum equalization aid for the prior fiscal year attributable to pupils receiving special instruction and services outside the regular classroom for more than 60 percent of the school day for the portion of time the pupils receive special instruction and services outside of the regular classroom, excluding portions attributable to district and school administration, district support services, operations and maintenance, capital expenditures, and pupil transportation.

(c) "General revenue" for a school district means the sum of the general education revenue according to section 126C.10, subdivision 1, excluding transportation sparsity revenue, local optional revenue, and total operating capital revenue. "General revenue" for a charter school means the sum of the general education revenue according to section 124E.20, subdivision 1, and transportation revenue according to section 124E.23, excluding referendum equalization aid, transportation sparsity revenue, and operating capital revenue.

Sec. 14.

Minnesota Statutes 2015 Supplement, section 127A.47, subdivision 7, is amended to read:

Subd. 7.

Alternative attendance programs.

(a) The general education aid and special education aid for districts must be adjusted for each pupil attending a nonresident district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments must be made according to this subdivision.

(b) For purposes of this subdivision, the "unreimbursed cost of providing special education and services" means the difference between: (1) the actual cost of providing special instruction and services, including special transportation and unreimbursed building lease and debt service costs for facilities used primarily for special education, for a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled in a program listed in this subdivision, minus (2) if the pupil receives special instruction and services outside the regular classroom for more than 60 percent of the school day, the amount of general education revenuenew text begin , excluding local optional revenue, plus local optional aidnew text end and referendum equalization aid as defined in section 125A.11, subdivision 1, paragraph (d), attributable to that pupil for the portion of time the pupil receives special instruction and services outside of the regular classroom, excluding portions attributable to district and school administration, district support services, operations and maintenance, capital expenditures, and pupil transportation, minus (3) special education aid under section 125A.76 attributable to that pupil, that is received by the district providing special instruction and services. For purposes of this paragraph, general education revenue and referendum equalization aid attributable to a pupil must be calculated using the serving district's average general education revenue and referendum equalization aid per adjusted pupil unit.

(c) For fiscal year 2015 and later, special education aid paid to a resident district must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing special education and services.

(d) Notwithstanding paragraph (c), special education aid paid to a resident district must be reduced by an amount equal to 100 percent of the unreimbursed cost of special education and services provided to students at an intermediate district, cooperative, or charter school where the percent of students eligible for special education services is at least 70 percent of the charter school's total enrollment.

(e) Notwithstanding paragraph (c), special education aid paid to a resident district must be reduced under paragraph (d) for students at a charter school receiving special education aid under section 124E.21, subdivision 3, calculated as if the charter school received special education aid under section 124E.21, subdivision 1.

(f) Special education aid paid to the district or cooperative providing special instruction and services for the pupil, or to the fiscal agent district for a cooperative, must be increased by the amount of the reduction in the aid paid to the resident district under paragraphs (c) and (d). If the resident district's special education aid is insufficient to make the full adjustment under paragraphs (c), (d), and (e), the remaining adjustment shall be made to other state aids due to the district.

(g) Notwithstanding paragraph (a), general education aid paid to the resident district of a nonspecial education student for whom an eligible special education charter school receives general education aid under section 124E.20, subdivision 1, paragraph (c), must be reduced by an amount equal to the difference between the general education aid attributable to the student under section 124E.20, subdivision 1, paragraph (c), and the general education aid that the student would have generated for the charter school under section 124E.20, subdivision 1, paragraph (a). For purposes of this paragraph, "nonspecial education student" means a student who does not meet the definition of pupil with a disability as defined in section 125A.02 or the definition of a pupil in section 125A.51.

(h) An area learning center operated by a service cooperative, intermediate district, education district, or a joint powers cooperative may elect through the action of the constituent boards to charge the resident district tuition for pupils rather than to have the general education revenue paid to a fiscal agent school district. Except as provided in paragraph (f), the district of residence must pay tuition equal to at least 90 and no more than 100 percent of the district average general education revenue per pupil unit minus an amount equal to the product of the formula allowance according to section 126C.10, subdivision 2, times .0466, calculated without compensatory revenue, local optional revenue, and transportation sparsity revenue, times the number of pupil units for pupils attending the area learning center.

Sec. 15.

Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision 2, is amended to read:

Subd. 2.

Special education; regular.

For special education aid under Minnesota Statutes, section 125A.75:

$ deleted text begin 1,170,929,000 deleted text end
new text begin 1,183,619,000 new text end
..... 2016
$ deleted text begin 1,229,706,000 deleted text end
new text begin 1,247,107,000 new text end
..... 2017

The 2016 appropriation includes $137,932,000 for 2015 and deleted text begin $1,032,997,000deleted text end new text begin $1,045,687,000new text end for 2016.

The 2017 appropriation includes deleted text begin $145,355,000deleted text end new text begin $147,202,000new text end for 2016 and deleted text begin $1,084,351,000deleted text end new text begin $1,099,905,000new text end for 2017.

Sec. 16.

new text begin REDUCING STATE-GENERATED SPECIAL EDUCATION PAPERWORK. new text end

new text begin Notwithstanding other law to the contrary in fiscal years 2017 and 2018, the commissioner of education must use existing budgetary resources to identify and remove 25 percent of the paperwork burden on Minnesota special education teachers that results from state but not federally mandated special education compliance reporting requirements. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 17.

new text begin APPROPRIATION CANCELED. new text end

new text begin $1,686,000 on June 30, 2016, is transferred from the information and telecommunications technology systems and services account under Minnesota Statutes, section 16E.21, to the general fund. This represents the amount the Department of Education transferred to that account in fiscal year 2015 after determining that the special education paperwork reduction activities authorized in an appropriation under Laws 2013, chapter 116, article 5, section 31, subdivision 8, were not feasible based on a onetime appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

ARTICLE 30

FACILITIES AND TECHNOLOGY

Section 1.

Minnesota Statutes 2014, section 123B.52, subdivision 1, is amended to read:

Subdivision 1.

Contracts.

A contract for work or labor, or for the purchase of furniture, fixtures, or other property, except books registered under the copyright lawsnew text begin and information systems softwarenew text end , or for the construction or repair of school houses, the estimated cost or value of which shall exceed that specified in section 471.345, subdivision 3, must not be made by the school board without first advertising for bids or proposals by two weeks' published notice in the official newspaper. This notice must state the time and place of receiving bids and contain a brief description of the subject matter.

Additional publication in the official newspaper or elsewhere may be made as the board shall deem necessary.

After taking into consideration conformity with the specifications, terms of delivery, and other conditions imposed in the call for bids, every such contract for which a call for bids has been issued must be awarded to the lowest responsible bidder, be duly executed in writing, and be otherwise conditioned as required by law. The person to whom the contract is awarded shall give a sufficient bond to the board for its faithful performance. Notwithstanding section 574.26 or any other law to the contrary, on a contract limited to the purchase of a finished tangible product, a board may require, at its discretion, a performance bond of a contractor in the amount the board considers necessary. A record must be kept of all bids, with names of bidders and amount of bids, and with the successful bid indicated thereon. A bid containing an alteration or erasure of any price contained in the bid which is used in determining the lowest responsible bid must be rejected unless the alteration or erasure is corrected as provided in this section. An alteration or erasure may be crossed out and the correction thereof printed in ink or typewritten adjacent thereto and initialed in ink by the person signing the bid. In the case of identical low bids from two or more bidders, the board may, at its discretion, utilize negotiated procurement methods with the tied low bidders for that particular transaction, so long as the price paid does not exceed the low tied bid price. In the case where only a single bid is received, the board may, at its discretion, negotiate a mutually agreeable contract with the bidder so long as the price paid does not exceed the original bid. If no satisfactory bid is received, the board may readvertise. Standard requirement price contracts established for supplies or services to be purchased by the district must be established by competitive bids. Such standard requirement price contracts may contain escalation clauses and may provide for a negotiated price increase or decrease based upon a demonstrable industrywide or regional increase or decrease in the vendor's costs. Either party to the contract may request that the other party demonstrate such increase or decrease. The term of such contracts must not exceed two years with an option on the part of the district to renew for an additional two years. Contracts for the purchase of perishable food items, except milk for school lunches and vocational training programs, in any amount may be made by direct negotiation by obtaining two or more written quotations for the purchase or sale, when possible, without advertising for bids or otherwise complying with the requirements of this section or section 471.345, subdivision 3. All quotations obtained shall be kept on file for a period of at least one year after receipt.

Every contract made without compliance with the provisions of this section shall be void. Except in the case of the destruction of buildings or injury thereto, where the public interest would suffer by delay, contracts for repairs may be made without advertising for bids.

Sec. 2.

Minnesota Statutes 2015 Supplement, section 123B.53, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the eligible debt service revenue of a district is defined as follows:

(1) the amount needed to produce between five and six percent in excess of the amount needed to meet when due the principal and interest payments on the obligations of the district for eligible projects according to subdivision 2, including the amounts necessary for repayment of deleted text begin energy loans according to section 216C.37 or sections 298.292 to 298.298,deleted text end debt service loans, capital loans, and lease purchase payments under section 126C.40, subdivision 2, excluding long-term facilities maintenance levies under section 123B.595, minus

(2) the amount of debt service excess levy reduction for that school year calculated according to the procedure established by the commissioner.

(b) The obligations in this paragraph are excluded from eligible debt service revenue:

(1) obligations under section 123B.61;

(2) the part of debt service principal and interest paid from the taconite environmental protection fund or Douglas J. Johnson economic protection trust, excluding the portion of taconite payments from the Iron Range school consolidation and cooperatively operated school account under section 298.28, subdivision 7a;

(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as amended by Laws 1992, chapter 499, article 5, section 24;

(4) obligations under section 123B.62; and

(5) obligations equalized under section 123B.535.

(c) For purposes of this section, if a preexisting school district reorganized under sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt service equalization aid must be computed separately for each of the preexisting districts.

(d) For purposes of this section, the adjusted net tax capacity determined according to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property generally exempted from ad valorem taxes under section 272.02, subdivision 64.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 3.

Minnesota Statutes 2014, section 123B.53, subdivision 5, is amended to read:

Subd. 5.

Equalized debt service levy.

(a) The equalized debt service levy of a district equals the sum of the first tier equalized debt service levy and the second tier equalized debt service levy.

(b) A district's first tier equalized debt service levy equals the district's first tier debt service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for the year before the year the levy is certified by the adjusted pupil units in the district for the school year ending in the year prior to the year the levy is certified; to

(2) $3,400 in fiscal year 2016 deleted text begin anddeleted text end new text begin ,new text end $4,430 in fiscal year 2017new text begin , and the greater of $4,430 or 55.33 percent of the initial equalizing factor in fiscal year 2018new text end and later.

(c) A district's second tier equalized debt service levy equals the district's second tier debt service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for the year before the year the levy is certified by the adjusted pupil units in the district for the school year ending in the year prior to the year the levy is certified; to

(2) $8,000new text begin in fiscal years 2016 and 2017, and the greater of $8,000 or 100 percent of the initial equalizing factor in fiscal year 2018 and laternew text end .

new text begin (d) For the purposes of this subdivision, the initial equalizing factor equals the quotient derived by dividing the total adjusted net tax capacity of all school districts in the state for the year before the year the levy is certified by the total number of adjusted pupil units in all school districts in the state in the year before the year the levy is certified. new text end

Sec. 4.

Minnesota Statutes 2014, section 123B.571, subdivision 2, is amended to read:

Subd. 2.

Radon testing.

A school district may include radon testing as a part of its deleted text begin health and safetydeleted text end new text begin ten-year facilitynew text end plannew text begin under section 123B.595, subdivision 4new text end . If a school district receives authority to use deleted text begin health and safetydeleted text end new text begin long-term facilities maintenance new text end revenue to conduct radon testing, the district shall conduct the testing according to the radon testing plan developed by the commissioners of health and education.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 5.

new text begin [123B.572] SOLAR PANEL FIRE SAFETY. new text end

new text begin A solar photovoltaic system installed at a school must comply with chapter 690 of the most current edition of NFPA 70, the National Electrical Code, adopted under the authority given in section 326B.32, subdivision 2. new text end

Sec. 6.

Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 1, is amended to read:

Subdivision 1.

Long-term facilities maintenance revenue.

(a) For fiscal year 2017 only, long-term facilities maintenance revenue equals the greater of (1) new text begin the sum of (i) new text end $193 times the district's adjusted pupil units times the lesser of one or the ratio of the district's average building age to 35 years, plus the cost approved by the commissioner for indoor air quality, fire alarm and suppression, and asbestos abatement projects under section 123B.57, subdivision 6, with an estimated cost of $100,000 or more per sitenew text begin , plus (ii) for a school district with an approved voluntary prekindergarten program under section 124D.151, the cost approved by the commissioner for remodeling existing instructional space to accommodate prekindergarten instruction, new text end or (2) the sum of new text begin (i) new text end the amount the district would have qualified for under Minnesota Statutes 2014, section 123B.57, Minnesota Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section 123B.591deleted text begin .deleted text end new text begin , and (ii) for a school district with an approved voluntary prekindergarten program under section 124D.151, the cost approved by the commissioner for remodeling existing instructional space to accommodate prekindergarten instruction.new text end

(b) For fiscal year 2018 only, long-term facilities maintenance revenue equals the greater of (1) new text begin the sum of (i) new text end $292 times the district's adjusted pupil units times the lesser of one or the ratio of the district's average building age to 35 years, plus new text begin (ii) new text end the cost approved by the commissioner for indoor air quality, fire alarm and suppression, and asbestos abatement projects under section 123B.57, subdivision 6, with an estimated cost of $100,000 or more per sitenew text begin , plus (iii) for a school district with an approved voluntary prekindergarten program under section 124D.151, the cost approved by the commissioner for remodeling existing instructional space to accommodate prekindergarten instruction,new text end or (2) the sum of new text begin (i) new text end the amount the district would have qualified for under Minnesota Statutes 2014, section 123B.57, Minnesota Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section 123B.591deleted text begin .deleted text end new text begin , and (ii) for a school district with an approved voluntary prekindergarten program under section 124D.151, the cost approved by the commissioner for remodeling existing instructional space to accommodate prekindergarten instruction.new text end

(c) For fiscal year 2019 and later, long-term facilities maintenance revenue equals the greater of (1) new text begin the sum of (i) new text end $380 times the district's adjusted pupil units times the lesser of one or the ratio of the district's average building age to 35 years, plus new text begin (ii) new text end the cost approved by the commissioner for indoor air quality, fire alarm and suppression, and asbestos abatement projects under section 123B.57, subdivision 6, with an estimated cost of $100,000 or more per sitenew text begin , plus (iii) for a school district with an approved voluntary prekindergarten program under section 124D.151, the cost approved by the commissioner for remodeling existing instructional space to accommodate prekindergarten instruction,new text end or (2) the sum of new text begin (i) new text end the amount the district would have qualified for under Minnesota Statutes 2014, section 123B.57, Minnesota Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section 123B.591deleted text begin .deleted text end new text begin , and (ii) for a school district with an approved voluntary prekindergarten program under section 124D.151, the cost approved by the commissioner for remodeling existing instructional space to accommodate prekindergarten instruction.new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 7.

Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 4, is amended to read:

Subd. 4.

Facilities plans.

(a) To qualify for revenue under this section, a school district or intermediate district, not including a charter school, must have a ten-year facility plan adopted by the school board and approved by the commissioner. The plan must include provisions for implementing a health and safety program that complies with health, safety, and environmental regulations and best practices, including indoor air quality management.

(b) The district must annually update the plan, deleted text begin bienniallydeleted text end submit deleted text begin a facility maintenancedeleted text end new text begin thenew text end plan to the commissionernew text begin for approval by July 31new text end , and indicate whether the district will issue bonds to finance the plan or levy for the costs.

(c) For school districts issuing bonds to finance the plan, the plan must include a debt service schedule demonstrating that the debt service revenue required to pay the principal and interest on the bonds each year will not exceed the projected long-term facilities revenue for that year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 8.

Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 7, is amended to read:

Subd. 7.

Long-term facilities maintenance equalization revenue.

(a) For fiscal year 2017 only, a district's long-term facilities maintenance equalization revenue equals the lesser of (1) $193 times the adjusted pupil units or (2) the district's revenue under subdivision 1.

(b) For fiscal year 2018 only, a district's long-term facilities maintenance equalization revenue equals the lesser of (1) $292 times the adjusted pupil units or (2) the district's revenue under subdivision 1.

(c) For fiscal year 2019 and later, a district's long-term facilities maintenance equalization revenue equals the lesser of (1) $380 times the adjusted pupil units or (2) the district's revenue under subdivision 1.

new text begin (d) Notwithstanding paragraphs (a) to (c), a district's long-term facilities maintenance equalization revenue must not be less than the lesser of the district's long-term facilities maintenance revenue or the amount of aid the district received for fiscal year 2015 under section 123B.59, subdivision 6. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 9.

Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 8, is amended to read:

Subd. 8.

Long-term facilities maintenance equalized levy.

new text begin (a)new text end For fiscal year 2017 and later, a district's long-term facilities maintenance equalized levy equals the district's long-term facilities maintenancenew text begin equalizationnew text end revenue minus the greater of:

(1) the lesser of the district's long-term facilities maintenancenew text begin equalizationnew text end revenue or the amount of aid the district received for fiscal year 2015 under Minnesota Statutes 2014, section 123B.59, subdivision 6; or

(2) the district's long-term facilities maintenance equalization revenue times the greater of (i) zero or (ii) one minus the ratio of its adjusted net tax capacity per adjusted pupil unit in the year preceding the year the levy is certified to 123 percent of the state average adjusted net tax capacity per adjusted pupil unitnew text begin for all school districtsnew text end in the year preceding the year the levy is certified.

new text begin (b) For purposes of this subdivision, "adjusted net tax capacity" means the value described in section 126C.01, subdivision 2, paragraph (b). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 10.

Minnesota Statutes 2015 Supplement, section 123B.595, is amended by adding a subdivision to read:

new text begin Subd. 8a. new text end

new text begin Long-term facilities maintenance unequalized levy. new text end

new text begin For fiscal year 2017 and later, a district's long-term facilities maintenance unequalized levy equals the difference between the district's revenue under subdivision 1 and the district's equalization revenue under subdivision 7. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 11.

Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 9, is amended to read:

Subd. 9.

Long-term facilities maintenance equalized aid.

For fiscal year 2017 and later, a district's long-term facilities maintenance equalized aid equals its long-term facilities maintenancenew text begin equalizationnew text end revenue minus its long-term facilities maintenance equalized levy times the ratio of the actualnew text begin equalizednew text end amount levied to the permitted new text begin equalizednew text end levy.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 12.

Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 10, is amended to read:

Subd. 10.

Allowed uses for long-term facilities maintenance revenue.

(a) A district may use revenue under this section for any of the following:

(1) deferred capital expenditures and maintenance projects necessary to prevent further erosion of facilities;

(2) increasing accessibility of school facilities; deleted text begin ordeleted text end

(3) health and safety capital projects under section 123B.57deleted text begin .deleted text end new text begin ; ornew text end

new text begin (4) by board resolution, to transfer money from the general fund reserve for long-term facilities maintenance to the debt redemption fund to pay the amounts needed to meet, when due, principal and interest on general obligation bonds issued under subdivision 5. new text end

(b) A charter school may use revenue under this section for any purpose related to the school.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 13.

Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 11, is amended to read:

Subd. 11.

Restrictions on long-term facilities maintenance revenue.

Notwithstanding subdivision deleted text begin 11deleted text end new text begin 10new text end , long-term facilities maintenance revenue may not be used:

(1) for the construction of new facilities, remodeling of existing facilities, or the purchase of portable classrooms;

(2) to finance a lease purchase agreement, installment purchase agreement, or other deferred payments agreement;

(3) for energy-efficiency projects under section 123B.65, for a building or property or part of a building or property used for postsecondary instruction or administration, or for a purpose unrelated to elementary and secondary education; or

(4) for violence prevention and facility security, ergonomics, or emergency communication devices.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 14.

Minnesota Statutes 2014, section 123B.60, subdivision 1, is amended to read:

Subdivision 1.

Bonds.

When a building owned by a district is substantially damaged by an act of God or other means beyond the control of the district, the district may issue general obligation bonds without an election to provide money immediately to carry out its adopted deleted text begin health and safetydeleted text end new text begin long-term facilities maintenancenew text end program. Each year the district must pledge an attributable share of its deleted text begin health and safetydeleted text end new text begin long-term facilities maintenancenew text end revenue to the repayment of principal and interest on the bonds. The pledged revenue must be deleted text begin transferred todeleted text end new text begin recognized innew text end the debt redemption fund of the district. The district must submit to the department the repayment schedule for any bonds issued under this section. The district must deposit in the debt redemption fund all proceeds received for specific costs for which the bonds were issued, including but not limited to:

(1) insurance proceeds;

(2) restitution proceeds; and

(3) proceeds of litigation or settlement of a lawsuit.

Before bonds are issued, the district must submit deleted text begin a combineddeleted text end new text begin an amended new text end application to the commissioner for deleted text begin health and safetydeleted text end new text begin long-term facilities maintenance new text end revenue, according to section deleted text begin 123B.57, and requesting review and comment, according to section 123B.71, subdivisions 8, 9, 11, and 12deleted text end new text begin 123B.595new text end . The commissioner shall complete all procedures concerning the combined application within 20 days of receiving the application. The publication provisions of section 123B.71, subdivision 12, do not apply to bonds issued under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 15.

Minnesota Statutes 2014, section 123B.71, subdivision 8, is amended to read:

Subd. 8.

Review and comment.

A school district, a special education cooperative, or a cooperative unit of government, as defined in section 123A.24, subdivision 2, must not initiate an installment contract for purchase or a lease agreement, hold a referendum for bonds, nor solicit bids for new construction, expansion, or remodeling of an educational facility that requires an expenditure in excess of $500,000 per school site if it has a capital loan outstanding, or $2,000,000 per school site if it does not have a capital loan outstanding, prior to review and comment by the commissioner. A facility addition, maintenance project, or remodeling project funded only with general education revenue, deleted text begin deferred maintenance revenue, alternative facilities bonding and levy program revenue, deleted text end lease levy proceeds, capital facilities bond proceeds, or deleted text begin health and safetydeleted text end new text begin long-term facilities maintenancenew text end revenue is exempt from this provision. A capital project under section 123B.63 addressing only technology is exempt from this provision if the district submits a school board resolution stating that funds approved by the voters will be used only as authorized in section 126C.10, subdivision 14. A school board shall not separate portions of a single project into components to avoid the requirements of this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and applies to review and comments for projects funded with revenue for fiscal year 2017 and later. new text end

Sec. 16.

Minnesota Statutes 2014, section 123B.79, subdivision 5, is amended to read:

Subd. 5.

Deficits; exception.

For the purposes of this section, a permanent transfer includes creating a deficit in a nonoperating fund for a period past the end of the current fiscal year which is covered by moneys in an operating fund. deleted text begin However,deleted text end A deficit in the deleted text begin capital expenditure funddeleted text end new text begin reserve for operating capital accountnew text end pursuant to section 123B.78, subdivision 5, does not constitute a permanent transfer.

Sec. 17.

Minnesota Statutes 2014, section 123B.79, subdivision 8, is amended to read:

Subd. 8.

Account transfer for reorganizing districts.

A district that has reorganized according to sections 123A.35 to 123A.43, 123A.46, or 123A.48, or has conducted a successful referendum on the question of combination under section 123A.37, subdivision 2, or consolidation under section 123A.48, subdivision 15, or has been assigned an identification number by the commissioner under section 123A.48, subdivision 16, may make permanent transfers between any of the funds or accounts in the newly created or enlarged district with the exception of the debt redemption fund, new text begin building construction fund, new text end food service fund, and deleted text begin health and safetydeleted text end new text begin long-term facilities maintenancenew text end account of the deleted text begin capital expendituredeleted text end new text begin generalnew text end fund. Fund transfers under this section may be made for up to one year prior to the effective date of combination or consolidation by the consolidating boards and during the year following the effective date of reorganization by the consolidated board. The newly formed board of the combined district may adopt a resolution on or before August 30 of the year of the reorganization authorizing a transfer among accounts or funds of the previous independent school districts which transfer or transfers shall be reported in the affected districts' audited financial statements for the year immediately preceding the consolidation.

Sec. 18.

Minnesota Statutes 2014, section 123B.79, subdivision 9, is amended to read:

Subd. 9.

Elimination of reserve accounts.

deleted text begin A school board shall eliminate all reserve accounts established in the school district's general fund under Minnesota Statutes before July 1, 2006, for which no specific authority remains in statute as of June 30, 2007. deleted text end Any balance in the district's reserved deleted text begin for bus purchasesdeleted text end accountnew text begin for deferred maintenance new text end as of June 30, deleted text begin 2007deleted text end new text begin 2016new text end , shall be transferred to the reserved account for deleted text begin operating capital deleted text end new text begin long-term facilities maintenancenew text end in the school district's general fund. deleted text begin Any balance in other reserved accounts established in the school district's general fund under Minnesota Statutes before July 1, 2006, for which no specific authority remains in statute as of June 30, 2007, shall be transferred to the school district's unreserved general fund balance. A school board may, upon adoption of a resolution by the school board, establish a designated account for any program for which a reserved account has been eliminated. deleted text end new text begin Any balance in the district's reserved account for health and safety as of June 30, 2019, shall be transferred to the unassigned fund balance account in the district's general fund. Any balance in the district's reserved account for alternative facilities as of June 30, 2016, shall be transferred to the reserved account for long-term facilities maintenance in the district's building construction fund.new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016, for fiscal year 2017 and later. new text end

Sec. 19.

Minnesota Statutes 2014, section 126C.40, subdivision 5, is amended to read:

Subd. 5.

Energy conservation.

deleted text begin For loans approved before March 1, 1998, the district may annually include as revenue under section 123B.53, without the approval of a majority of the voters in the district, an amount sufficient to repay the annual principal and interest of the loan made pursuant to sections 216C.37 and 298.292 to 298.298.deleted text end For energy loans approved after March 1, 1998, new text begin under sections 216C.37 and 298.292 to 298.298, new text end school districts must annually transfer from the general fund to the debt redemption fund the amount sufficient to pay interest and principal on the loans.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 20.

Minnesota Statutes 2015 Supplement, section 126C.48, subdivision 8, is amended to read:

Subd. 8.

Taconite payment and other reductions.

(1) Reductions in levies pursuant to subdivision 1 must be made prior to the reductions in clause (2).

(2) Notwithstanding any other law to the contrary, districts that have revenue pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34 to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon severed mineral values must reduce the levies authorized by this chapter and chapters 120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A, excluding the student achievement levy under section 126C.13, subdivision 3b, by 95 percent of the sum of the previous year's revenue specified under this clause and the amount attributable to the same production year distributed to the cities and townships within the school district under section 298.28, subdivision 2, paragraph (c).

(3) The amount of any voter approved referendum, facilities down payment, and debt levies shall not be reduced by more than 50 percent under this subdivision, except that payments under section 298.28, subdivision 7a, may reduce the debt service levy by more than 50 percent. In administering this paragraph, the commissioner shall first reduce the nonvoter approved levies of a district; then, if any payments, severed mineral value tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall reduce any voter approved referendum levies authorized under section 126C.17; then, if any payments, severed mineral value tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall reduce any voter approved facilities down payment levies authorized under section 123B.63 and then, if any payments, severed mineral value tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall reduce any voter approved debt levies.

(4) Before computing the reduction pursuant to this subdivision of the deleted text begin health and safetydeleted text end new text begin long-term facilities maintenancenew text end levy authorized by deleted text begin sections 123B.57 and 126C.40, subdivision 5deleted text end new text begin section 123B.595new text end , the commissioner shall ascertain from each affected school district the amount it proposes to levy deleted text begin under each section or subdivisiondeleted text end . The reduction shall be computed on the basis of the amount so ascertained.

(5) To the extent the levy reduction calculated under paragraph (2) exceeds the limitation in paragraph (3), an amount equal to the excess must be distributed from the school district's distribution under sections 298.225, 298.28, and 477A.15 in the following year to the cities and townships within the school district in the proportion that their taxable net tax capacity within the school district bears to the taxable net tax capacity of the school district for property taxes payable in the year prior to distribution. No city or township shall receive a distribution greater than its levy for taxes payable in the year prior to distribution. The commissioner of revenue shall certify the distributions of cities and towns under this paragraph to the county auditor by September 30 of the year preceding distribution. The county auditor shall reduce the proposed and final levies of cities and towns receiving distributions by the amount of their distribution. Distributions to the cities and towns shall be made at the times provided under section 298.27.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 21.

Minnesota Statutes 2014, section 126C.63, subdivision 7, is amended to read:

Subd. 7.

Required debt service levy.

"Required debt service levy" means the total dollar amount needed to be included in the taxes levied by the district in any year for payment of interest and principal falling due on its debts prior to collection of the next ensuing year's debt service levynew text begin excluding levies for bonds issued after the later of (1) November 30, 2016, or (2) three years after the date of the district's receipt of a capital loan from the state, and excluding the debt service levy for obligations under sections 123B.595, 123B.61, and 123B.62new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2017 and later. new text end

Sec. 22.

Laws 2011, First Special Session chapter 11, article 4, section 8, is amended to read:

Sec. 8.

EARLY REPAYMENT.

new text begin (a) new text end A school district that received a maximum effort capital loan prior to January 1, 1997, may repay the full outstanding original principal on its capital loan prior to July 1, 2012, and the liability of the district on the loan is satisfied and discharged and interest on the loan ceases.

new text begin (b) A school district with an outstanding capital loan balance that received a maximum effort capital loan prior to January 1, 2007, may repay to the commissioner of education by November 30, 2016, the full outstanding original principal on its capital loan and the liability of the district on the loan is satisfied and discharged and interest on the loan ceases. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 23.

Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 2, is amended to read:

Subd. 2.

Long-term maintenance equalization aid.

For long-term maintenance equalization aid under Minnesota Statutes, section 123B.595:

$ 0 ..... 2016
$ deleted text begin 52,088,000 deleted text end
new text begin 52,844,000 new text end
..... 2017

The 2017 appropriation includes $0 for 2016 and deleted text begin $52,088,000deleted text end new text begin $52,844,000new text end for 2017.

Sec. 24.

new text begin INTERNET BROADBAND EXPANSION FOR STUDENTS; INNOVATIVE GRANTS. new text end

new text begin Subdivision 1. new text end

new text begin Broadband Wi-Fi hot spots. new text end

new text begin (a) A school district is eligible for a broadband hot spot grant not to exceed $50,000 to support wireless off-campus learning through a student's use of a data card, USB modem, or other mobile broadband device that enables the student to access learning materials available on the Internet through a mobile broadband connection. A district's application for a grant under this subdivision must describe its approach for identifying and prioritizing access for low-income students and others otherwise unable to access the Internet and may include a description of local or private matching grants or in-kind contributions. new text end

new text begin (b) When evaluating applications, the commissioner may give priority to grant applications that include local in-kind contributions. To the extent practicable, the commissioner must distribute the grants to districts located throughout the state including in urban areas, suburban areas, and in greater Minnesota. new text end

new text begin (c) A school district may develop its application in cooperation with its community education department, its adult basic education program provider, a public library, or other community partner. new text end

new text begin (d) A school district that qualifies for general education transportation sparsity revenue under Minnesota Statutes, section 126C.10, may apply to the commissioner of education for a school bus Internet access grant as a part of its grant application under paragraph (a). The commissioner of education must prioritize grants to districts with the longest bus routes. A school district that receives a grant under this subdivision may use the grant to purchase or lease equipment designed to make Internet access available on school buses, including routers and mobile Wi-Fi hot spots to connect to the Internet, and may also purchase or lease one-to-one devices for students. The one-to-one devices may be connected to the Internet through the Wi-Fi hot spot or otherwise contain content for age-appropriate, self-directed learning. new text end

new text begin Subd. 2. new text end

new text begin Internet access for students. new text end

new text begin Consistent with Minnesota Statutes, section 125B.15, all grant applications submitted under this section must demonstrate to the commissioner's satisfaction that the Internet access provided through the grant proceeds will include filtering technology or other effective methods to limit student access to material that is reasonably believed to be obscene, child pornography, or material harmful to minors under federal or state law. new text end

Sec. 25.

new text begin APPROPRIATIONS. new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are appropriated from the general fund to the commissioner of education for the fiscal years designated. new text end

new text begin Subd. 2. new text end

new text begin Broadband expansion grants. new text end

new text begin For broadband expansion grants: new text end

new text begin $ new text end new text begin 500,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin This is a onetime appropriation. This appropriation is available until June 30, 2019. new text end

new text begin Subd. 5. new text end

new text begin Early repayment aid incentive. new text end

new text begin (a) For incentive grants for a district that repays the full outstanding original principal on its capital loan by November 30, 2016, under Laws 2011, First Special Session chapter 11, article 4, section 8, as amended by this act: new text end

new text begin $ new text end new text begin 2,200,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin (b) Of this amount, $180,000 is for a grant to Independent School District No. 95, Cromwell; $495,000 is for a grant to Independent School District No. 299, Caledonia; $220,000 is for a grant to Independent School District No. 306, Laporte; $150,000 is for a grant to Independent School District No. 362, Littlefork; $650,000 is for a grant to Independent School District No. 682, Roseau; and $505,000 is for a grant to Independent School District No. 2580, East Central. new text end

new text begin (c) The grant may be used for any school-related purpose. new text end

new text begin (d) The base appropriation for 2022 is zero. new text end

Sec. 26.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2014, sections 123B.60, subdivision 2; and 123B.79, subdivisions 2 and 6, new text end new text begin are repealed for fiscal year 2017 and later. new text end

ARTICLE 31

EARLY CHILDHOOD EDUCATION

Section 1.

Minnesota Statutes 2014, section 124D.135, subdivision 6, is amended to read:

Subd. 6.

Home visiting deleted text begin levydeleted text end new text begin revenuenew text end .

new text begin (a) new text end A district that is eligible to levy for early childhood family education under subdivision 3 and that enters into a collaborative agreement to provide education services and social services to families with young children deleted text begin may levy an amount equal to $1.60deleted text end new text begin is eligible for home visiting revenue.new text end

new text begin (b) Total home visiting revenue for a district equals $3new text end times the number of people under five years of age residing in the district on September 1 of the last school year. deleted text begin Levy deleted text end Revenue under this subdivision must not be included as revenue under subdivision 1. The revenue must be used for home visiting programs under section 124D.13, subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2018 and later. new text end

Sec. 2.

Minnesota Statutes 2014, section 124D.135, is amended by adding a subdivision to read:

new text begin Subd. 6a. new text end

new text begin Home visiting levy. new text end

new text begin To obtain home visiting revenue, a district may levy an amount not more than the product of its home visiting revenue for the fiscal year times the lesser of one or the ratio of its adjusted net tax capacity per adjusted pupil unit to the home visiting equalizing factor. The home visiting equalizing factor equals $17,250 for fiscal year 2018 and later. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2018 and later. new text end

Sec. 3.

Minnesota Statutes 2014, section 124D.135, is amended by adding a subdivision to read:

new text begin Subd. 6b. new text end

new text begin Home visiting aid. new text end

new text begin A district's home visiting aid equals its home visiting revenue minus its home visiting levy times the ratio of the actual amount levied to the permitted levy. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2018 and later. new text end

Sec. 4.

Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 7, is amended to read:

Subd. 7.

Parent-child home program.

For a grant to the parent-child home program:

$ 350,000 ..... 2016
$ deleted text begin 350,000 deleted text end
new text begin 2,350,000 new text end
..... 2017

The grant must be used for an evidence-based and research-validated early childhood literacy and school readiness program for children ages 16 months to four years at its existing suburban program location. The program must include urban and rural program locations for fiscal years 2016 and 2017.

new text begin The base appropriation for this program for fiscal year 2018 and later is $350,000. The 2017 appropriation is available until June 30, 2019. new text end

new text begin To the extent practicable, the parent-child home program is encouraged to expend the fiscal year 2017 appropriation equally over fiscal years 2017, 2018, and 2019. new text end

Sec. 5.

Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 9, is amended to read:

Subd. 9.

Quality Rating System.

For transfer to the commissioner of human services for the purposes of expanding the Quality Rating and Improvement System under Minnesota Statutes, section 124D.142, in greater Minnesota and increasing supports for providers participating in the Quality Rating and Improvement System:

$ 1,200,000 ..... 2016
$ deleted text begin 2,300,000 deleted text end
new text begin 4,300,000 new text end
..... 2017

new text begin To the extent possible, the commissioner must direct at least $2,000,000 of the 2017 appropriation toward increasing access and providing training assistance to providers who are located in underserved or low-income neighborhoods. new text end

Any balance in the first year does not cancel but is available in the second year. The base for this program in fiscal year 2018 and later is $1,750,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016. new text end

Sec. 6.

new text begin APPROPRIATION. new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are appropriated from the general fund to the commissioner of education for the fiscal year designated. new text end

new text begin Subd. 2. new text end

new text begin St. Cloud preschool pilot program. new text end

new text begin For a grant to Independent School District No. 742, St. Cloud, to establish a preschool pilot program targeting low-income students and English learners. new text end

new text begin $ new text end new text begin 430,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin Funds appropriated in this section are to be used to create morning and afternoon preschool sections, serving at least 90 students from families with low income or from families where English is not the primary language spoken in the child's home environment. The funds appropriated under this section may be used to purchase developmentally appropriate furniture and materials, instructional materials, and curriculum materials; hire and train teachers and staff; and offset transportation costs. new text end

new text begin Independent School District No. 742, St. Cloud, must submit an annual report by January 15 of 2017, 2018, and 2019, describing the activities undertaken and outcomes achieved with this grant. The 2019 report must contain recommendations for other districts interested in similar prekindergarten programs. new text end

new text begin This is a onetime appropriation. The fiscal year 2017 appropriation is available until June 30, 2019. new text end

ARTICLE 32

SELF-SUFFICIENCY AND LIFELONG LEARNING

Section 1.

Minnesota Statutes 2014, section 124D.52, subdivision 1, is amended to read:

Subdivision 1.

Program requirements.

(a) An adult basic education program is a day or evening program offered by a district that is for people deleted text begin over 16 years of agedeleted text end who do not attend an elementary or secondary schoolnew text begin and are not subject to compulsory attendancenew text end . The program offers academic and English language instruction necessary to earn a high school diploma or equivalency certificate.

(b) Notwithstanding any law to the contrary, a school board or the governing body of a consortium offering an adult basic education program may adopt a sliding fee schedule based on a family's income, but must waive the fee for participants who are under the age of 21 or unable to pay. The fees charged must be designed to enable individuals of all socioeconomic levels to participate in the program. A program may charge a security deposit to assure return of materials, supplies, and equipment.

(c) Each approved adult basic education program must develop a memorandum of understanding with the local workforce development centers located in the approved program's service delivery area. The memorandum of understanding must describe how the adult basic education program and the workforce development centers will cooperate and coordinate services to provide unduplicated, efficient, and effective services to clients.

(d) Adult basic education aid must be spent for adult basic education purposes as specified in sections 124D.518 to 124D.531.

(e) A state-approved adult basic education program must count and submit student contact hours for a program that offers high school credit toward an adult high school diploma according to student eligibility requirements and measures of student progress toward work-based competency and, where appropriate, English language proficiency requirements established by the commissioner and posted on the department Web site in a readily accessible location and format.

Sec. 2.

Minnesota Statutes 2014, section 124D.52, subdivision 2, is amended to read:

Subd. 2.

Program approval.

(a) To receive aid under this section, a district, deleted text begin a consortium of districts,deleted text end the Department of Corrections, deleted text begin ordeleted text end a private nonprofit organizationnew text begin , or a consortium including districts, nonprofit organizations, or bothnew text end must submit an application by June 1 describing the program, on a form provided by the department. The program must be approved by the commissioner according to the following criteria:

(1) how the needs of different levels of learning and English language proficiency will be met;

(2) for continuing programs, an evaluation of results;

(3) anticipated number and education level of participants;

(4) coordination with other resources and services;

(5) participation in a consortium, if any, and money available from other participants;

(6) management and program design;

(7) volunteer training and use of volunteers;

(8) staff development services;

(9) program sites and schedules;

(10) program expenditures that qualify for aid;

(11) program ability to provide data related to learner outcomes as required by law; and

(12) a copy of the memorandum of understanding described in subdivision 1 submitted to the commissioner.

(b) Adult basic education programs may be approved under this subdivision for up to five years. Five-year program approval must be granted to an applicant who has demonstrated the capacity to:

(1) offer comprehensive learning opportunities and support service choices appropriate for and accessible to adults at all basic skill and English language levels of need;

(2) provide a participatory and experiential learning approach based on the strengths, interests, and needs of each adult, that enables adults with basic skill needs to:

(i) identify, plan for, and evaluate their own progress toward achieving their defined educational and occupational goals;

(ii) master the basic academic reading, writing, and computational skills, as well as the problem-solving, decision making, interpersonal effectiveness, and other life and learning skills they need to function effectively in a changing society;

(iii) locate and be able to use the health, governmental, and social services and resources they need to improve their own and their families' lives; and

(iv) continue their education, if they desire, to at least the level of secondary school completion, with the ability to secure and benefit from continuing education that will enable them to become more employable, productive, and responsible citizens;

(3) plan, coordinate, and develop cooperative agreements with community resources to address the needs that the adults have for support services, such as transportation, English language learning, flexible course scheduling, convenient class locations, and child care;

(4) collaborate with business, industry, labor unions, and employment-training agencies, as well as with family and occupational education providers, to arrange for resources and services through which adults can attain economic self-sufficiency;

(5) provide sensitive and well trained adult education personnel who participate in local, regional, and statewide adult basic education staff development events to master effective adult learning and teaching techniques;

(6) participate in regional adult basic education peer program reviews and evaluations;

(7) submit accurate and timely performance and fiscal reports;

(8) submit accurate and timely reports related to program outcomes and learner follow-up information; and

(9) spend adult basic education aid on adult basic education purposes only, which are specified in sections 124D.518 to 124D.531.

(c) The commissioner shall require each district to provide notification by February 1, deleted text begin 2001,deleted text end of its intent to apply for funds under this section as a single district or as part of deleted text begin an identifieddeleted text end new text begin a new text end consortiumdeleted text begin of districtsdeleted text end . A district receiving funds under this section must notify the commissioner by February 1 of its intent to change its application status for applications due the following June 1.

Sec. 3.

Minnesota Statutes 2014, section 124D.55, is amended to read:

124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.

The commissioner shall pay 60 percent of the fee that is charged to an eligible individual for the full battery of deleted text begin adeleted text end general education development (GED) deleted text begin testdeleted text end new text begin testsnew text end , but not more than $40 for an eligible individual.

new text begin For fiscal year 2017 only, the commissioner shall pay 100 percent of the fee charged to an eligible individual for the full battery of general education development (GED) tests, but not more than the cost of one full battery of tests per year for any individual. new text end

Sec. 4.

Laws 2015, First Special Session chapter 3, article 11, section 3, subdivision 3, is amended to read:

Subd. 3.

GED tests.

For payment of deleted text begin 60 percent of the costs ofdeleted text end GED deleted text begin testsdeleted text end new text begin test costsnew text end under Minnesota Statutes, section 124D.55:

$ 125,000 ..... 2016
$ deleted text begin 125,000 deleted text end
new text begin 245,000 new text end
..... 2017

new text begin The base appropriation for fiscal year 2018 and later is $125,000. new text end

Sec. 5.

new text begin APPROPRIATIONS. new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are appropriated from the general fund to the commissioner of education for the fiscal years designated. new text end

new text begin Subd. 2. new text end

new text begin Adult basic education. new text end

new text begin For a grant for additional adult basic aid: new text end

new text begin $ new text end new text begin 400,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin The International Education Center, the American Indian Opportunities Industrialization Center, and the Minnesota Office of Communication Service for the Deaf are eligible for additional adult basic education aid for innovative programs for fiscal year 2017 only. The onetime aid for each organization equals $400,000 times the ratio of the organization's number of students served for the previous fiscal year to the sum of the three organizations' number of students served for the previous fiscal year. new text end

new text begin This is a onetime appropriation. new text end

new text begin Subd. 3. new text end

new text begin Adult basic education grants. new text end

new text begin (a) For adult basic education grants: new text end

new text begin $ new text end new text begin 400,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin (b) Of this amount, $150,000 is for grants to the International Institute of Minnesota to establish a college readiness academy. A college readiness academy is a partnership between ABE programs, with support from Minnesota State Colleges and Universities, to prepare ABE students to successfully enter college and complete credit-bearing courses needed for career-related credentials. The academy must include academic skill building for college success, integrated sector-specific academic training when applicable, and intensive navigation and educational support for the program participants. new text end

new text begin (c) Of this amount, $150,000 is for a grant to Summit Academy OIC to establish a contextualized GED or adult diploma program to prepare adults for successful GED or adult diploma completion and successful entry into credentialing programs leading to careers. The program must: new text end

new text begin (1) provide program navigation and academic supports; new text end

new text begin (2) be connected to an ABE consortium and partner with the Department of Employment and Economic Development; and new text end

new text begin (3) provide instruction in one of the state's six demand sectors identified by the Department of Employment and Economic Development, serving participants in the top three ABE levels of ABE intermediate high, adult secondary education (ASE) low, or ASE high. new text end

new text begin (d) Of this amount, $100,000 is for grants to ABE programs to provide ABE navigating and advising support services. The programs must help ABE students: new text end

new text begin (1) explore careers; new text end

new text begin (2) develop personalized learning; new text end

new text begin (3) plan for a postsecondary education and career; new text end

new text begin (4) attain personal learning goals; new text end

new text begin (5) complete a standard adult high school diploma under Minnesota Statutes, section 124D.52, subdivisions 8 and 9, or complete a GED; new text end

new text begin (6) develop time management and study skills; new text end

new text begin (7) develop critical academic and career-related skills needed to enroll in a postsecondary program without need for remediation; new text end

new text begin (8) navigate the registration process for a postsecondary program; new text end

new text begin (9) understand postsecondary program requirements and instruction expectations; and new text end

new text begin (10) resolve personal issues related to mental health, domestic abuse, chemical abuse, homelessness, and other issues that, if left unaddressed, are barriers to enrolling in and completing a postsecondary program. new text end

new text begin (e) The commissioner must award ABE navigating and advising support services grants to up to eight ABE programs. The commissioner shall award grants to programs based on program capacity, need, and geographic balance of programs around the state. The commissioner shall give priority to ABE programs already providing navigating and advising support services. The commissioner shall allocate the grant funding based on the number of ABE program participants the program served in the prior year. new text end

new text begin (f) This is a onetime appropriation and is available until June 30, 2019. new text end

ARTICLE 33

STATE AGENCIES

Section 1.

Minnesota Statutes 2014, section 122A.21, as amended by Laws 2015, First Special Session chapter 3, article 2, section 17, is amended to read:

122A.21 TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.

Subdivision 1.

Licensure applications.

Each application for the issuance, renewal, or extension of a license to teach, including applications for licensure via portfolio under subdivision 2, must be accompanied by a processing fee of $57. deleted text begin Each application for issuing, renewing, or extending the license of a school administrator or supervisor must be accompanied by a processing fee in the amount set by the Board of Teaching.deleted text end The processing fee for a teacher's license and for the licenses of supervisory personnel must be paid to the executive secretary of the appropriate board. The executive secretary of the board shall deposit the fees with the commissioner of management and budget. The fees as set by the board are nonrefundable for applicants not qualifying for a license. However, a fee must be refunded by the commissioner of management and budget in any case in which the applicant already holds a valid unexpired license. The board may waive or reduce fees for applicants who apply at the same time for more than one license.

Subd. 2.

Licensure via portfolio.

(a) An eligible candidate may use licensure via portfolio to obtain deleted text begin an initial licensuredeleted text end new text begin a professional five-year teaching licensenew text end or to add a licensure field, consistent with applicable Board of Teaching licensure rules.

(b) A candidate for deleted text begin initial licensuredeleted text end new text begin a professional five-year teaching licensenew text end must submit to the Educator Licensing Division at the department one portfolio demonstrating pedagogical competence and one portfolio demonstrating content competence.

(c) A candidate seeking to add a licensure field must submit to the Educator Licensing Division at the department one portfolio demonstrating content competence.

(d) The Board of Teaching must notify a candidate who submits a portfolio under paragraph (b) or (c) within 90 calendar days after the portfolio is received whether or not the portfolio was approved. If the portfolio was not approved, the board must immediately inform the candidate how to revise the portfolio to successfully demonstrate the requisite competence. The candidate may resubmit a revised portfolio at any time and the Educator Licensing Division at the department must approve or disapprove the portfolio within 60 calendar days of receiving it.

(e) A candidate must pay to the executive secretary of the Board of Teaching a $300 fee for the first portfolio submitted for review and a $200 fee for any portfolio submitted subsequently. deleted text begin The fees must be paid to the executive secretary of the Board of Teaching.deleted text end The revenue generated from the fee must be deposited in an education licensure portfolio account in the special revenue fund. The fees set by the Board of Teaching are nonrefundable for applicants not qualifying for a license. The Board of Teaching may waive or reduce fees for candidates based on financial need.

Sec. 2.

Laws 2015, First Special Session chapter 3, article 12, section 4, subdivision 2, is amended to read:

Subd. 2.

Department.

(a) For the Department of Education:

$ deleted text begin 21,246,000 deleted text end
new text begin 21,276,000 new text end
..... 2016
$ deleted text begin 21,973,000 deleted text end
new text begin 26,384,000 new text end
..... 2017

Of these amounts:

(1) deleted text begin $718,000 each yeardeleted text end new text begin $748,000 in fiscal year 2016 and zero in fiscal year 2017 new text end is for the Board of Teachingnew text begin . Any balance in the first year does not cancel, but is available in the second yearnew text end ;

(2) $228,000 in fiscal year 2016 and $231,000 in fiscal year 2017 are for the Board of School Administrators;

(3) $1,000,000 each year is for Regional Centers of Excellence under Minnesota Statutes, section 120B.115;

(4) $500,000 each year is for the School Safety Technical Assistance Center under Minnesota Statutes, section 127A.052;

(5) $250,000 each year is for the School Finance Division to enhance financial data analysis; deleted text begin anddeleted text end

(6) $441,000 in fiscal year 2016 and $720,000 in fiscal year 2017 is for implementing Laws 2014, chapter 272, article 1, Minnesota's Learning for English Academic Proficiency and Success Act, as amendednew text begin ;new text end

new text begin (7) $2,750,000 in fiscal year 2017 only is for implementation of schoolwide Positive Behavioral Interventions and Supports (PBIS) in schools and districts throughout Minnesota to reduce the use of restrictive procedures and increase use of positive practices. This is a onetime appropriation; and new text end

new text begin (8) $1,000,000 in fiscal year 2017 only is for Department of Education information technology enhancements and security. This is a onetime appropriationnew text end .

(b) Any balance in the first year does not cancel but is available in the second year.

(c) None of the amounts appropriated under this subdivision may be used for Minnesota's Washington, D.C. office.

(d) The expenditures of federal grants and aids as shown in the biennial budget document and its supplements are approved and appropriated and shall be spent as indicated.

(e) This appropriation includes funds for information technology project services and support subject to the provisions of Minnesota Statutes, section 16E.0466. Any ongoing information technology costs will be incorporated into the service level agreement and will be paid to the Office of MN.IT Services by the Department of Education under the rates and mechanism specified in that agreement.

(f) The agency's base budget in fiscal year 2018 is deleted text begin $21,973,000deleted text end new text begin $22,121,000new text end . The agency's base budget in fiscal year 2019 is deleted text begin $21,948,000deleted text end new text begin $22,096,000new text end .

new text begin Subd. 3. new text end

new text begin Licensure by Portfolio. new text end

new text begin For licensure by portfolio: new text end

new text begin $ new text end new text begin 34,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin This appropriation is from the educator licensure portfolio account of the special revenue fund. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 3.

new text begin APPROPRIATIONS; BOARD OF TEACHING. new text end

new text begin (a) The sums indicated in this section are appropriated from the general fund to the Board of Teaching for the fiscal years designated: new text end

new text begin $ new text end new text begin 1,018,000 new text end new text begin ..... new text end new text begin 2017 new text end

new text begin Of this amount, $80,000 in fiscal year 2017 only is for a contract for an electronic statewide school teacher and administrator job board. The job board must allow school districts to post job openings for prekindergarten through grade 12 teaching and administrative positions. Notwithstanding Minnesota Statutes, section 16E.0466, the board is not required to consult with the Office of MN.IT Services nor transfer any of this appropriation to the Office of MN.IT Services. new text end

new text begin (b) This appropriation includes funds for information technology project services and support subject to Minnesota Statutes, section 16E.0466. Any ongoing information technology costs will be incorporated into an interagency agreement and will be paid to the Office of MN.IT Services by the Board of Teaching under the mechanism specified in that agreement. new text end

new text begin (c) The board's base budget for fiscal year 2018 and later is $968,000. new text end

ARTICLE 34

FORECAST ADJUSTMENTS

A. GENERAL EDUCATION

Section 1.

Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 4, is amended to read:

Subd. 4.

Abatement revenue.

For abatement aid under Minnesota Statutes, section 127A.49:

$ deleted text begin 2,740,000 deleted text end
new text begin 3,051,000 new text end
..... 2016
$ deleted text begin 2,932,000 deleted text end
new text begin 3,425,000 new text end
..... 2017

The 2016 appropriation includes $278,000 for 2015 and deleted text begin $2,462,000deleted text end new text begin $2,773,000new text end for 2016.

The 2017 appropriation includes deleted text begin $273,000deleted text end new text begin $308,000new text end for 2016 and deleted text begin $2,659,000deleted text end new text begin $3,117,000new text end for 2017.

Sec. 2.

Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 5, is amended to read:

Subd. 5.

Consolidation transition.

For districts consolidating under Minnesota Statutes, section 123A.485:

$ deleted text begin 292,000 deleted text end
new text begin 22,000 new text end
..... 2016
$ deleted text begin 165,000 deleted text end
new text begin 0 new text end
..... 2017

The 2016 appropriation includes $22,000 for 2015 and deleted text begin $270,000deleted text end new text begin $0new text end for 2016.

The 2017 appropriation includes deleted text begin $30,000deleted text end new text begin $0new text end for 2016 and deleted text begin $135,000deleted text end new text begin $0new text end for 2017.

Sec. 3.

Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 6, is amended to read:

Subd. 6.

Nonpublic pupil education aid.

For nonpublic pupil education aid under Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

$ deleted text begin 16,881,000 deleted text end
new text begin 16,759,000 new text end
..... 2016
$ deleted text begin 17,460,000 deleted text end
new text begin 17,235,000 new text end
..... 2017

The 2016 appropriation includes $1,575,000 for 2015 and deleted text begin $15,306,000deleted text end new text begin $15,184,000new text end for 2016.

The 2017 appropriation includes deleted text begin $1,700,000deleted text end new text begin $1,687,000new text end for 2016 and deleted text begin $15,760,000deleted text end new text begin $15,548,000new text end for 2017.

Sec. 4.

Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 7, is amended to read:

Subd. 7.

Nonpublic pupil transportation.

For nonpublic pupil transportation aid under Minnesota Statutes, section 123B.92, subdivision 9:

$ deleted text begin 17,654,000 deleted text end
new text begin 17,673,000 new text end
..... 2016
$ deleted text begin 17,792,000 deleted text end
new text begin 18,103,000 new text end
..... 2017

The 2016 appropriation includes $1,816,000 for 2015 and deleted text begin $15,838,000deleted text end new text begin $15,857,000new text end for 2016.

The 2017 appropriation includes deleted text begin $1,759,000deleted text end new text begin $1,761,000new text end for 2016 and deleted text begin $16,033,000deleted text end new text begin $16,342,000new text end for 2017.

Sec. 5.

Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 9, is amended to read:

Subd. 9.

Career and technical aid.

For career and technical aid under Minnesota Statutes, section 124D.4531, subdivision 1b:

$ deleted text begin 5,420,000 deleted text end
new text begin 5,922,000 new text end
..... 2016
$ deleted text begin 4,405,000 deleted text end
new text begin 4,262,000 new text end
..... 2017

The 2016 appropriation includes $574,000 for 2015 and deleted text begin $4,846,000deleted text end new text begin $5,348,000new text end for 2016.

The 2017 appropriation includes deleted text begin $538,000deleted text end new text begin $517,000new text end for 2016 and deleted text begin $3,867,000deleted text end new text begin $3,745,000new text end for 2017.

B. EDUCATION EXCELLENCE

Sec. 6.

Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 4, is amended to read:

Subd. 4.

Literacy incentive aid.

For literacy incentive aid under Minnesota Statutes, section 124D.98:

$ deleted text begin 44,552,000 deleted text end
new text begin 44,538,000 new text end
..... 2016
$ deleted text begin 45,508,000 deleted text end
new text begin 45,855,000 new text end
..... 2017

The 2016 appropriation includes $4,683,000 for 2015 and deleted text begin $39,869,000deleted text end new text begin $39,855,000new text end for 2016.

The 2017 appropriation includes deleted text begin $4,429,000deleted text end new text begin $4,428,000new text end for 2016 and deleted text begin $41,079,000deleted text end new text begin $41,427,000new text end for 2017.

Sec. 7.

Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 5, is amended to read:

Subd. 5.

Interdistrict desegregation or integration transportation grants.

For interdistrict desegregation or integration transportation grants under Minnesota Statutes, section 124D.87:

$ deleted text begin 15,023,000 deleted text end
new text begin 14,423,000 new text end
..... 2016
$ deleted text begin 15,825,000 deleted text end
new text begin 15,193,000 new text end
..... 2017

Sec. 8.

Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 7, is amended to read:

Subd. 7.

Tribal contract schools.

For tribal contract school aid under Minnesota Statutes, section 124D.83:

$ deleted text begin 4,340,000 deleted text end
new text begin 3,539,000 new text end
..... 2016
$ deleted text begin 5,090,000 deleted text end
new text begin 3,715,000 new text end
..... 2017

The 2016 appropriation includes $204,000 for 2015 and deleted text begin $4,136,000deleted text end new text begin $3,335,000new text end for 2016.

The 2017 appropriation includes deleted text begin $459,000deleted text end new text begin $370,000new text end for 2016 and deleted text begin $4,631,000deleted text end new text begin $3,345,000new text end for 2017.

Sec. 9.

Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 11, is amended to read:

Subd. 11.

American Indian education aid.

For American Indian education aid under Minnesota Statutes, section 124D.81, subdivision 2a:

$ deleted text begin 7,868,000 deleted text end
new text begin 7,740,000 new text end
..... 2016
$ deleted text begin 8,875,000 deleted text end
new text begin 8,878,000 new text end
..... 2017

The 2016 appropriation includes $0 for 2015 and deleted text begin $7,868,000deleted text end new text begin $7,740,000new text end for 2016.

The 2017 appropriation includes deleted text begin $874,000deleted text end new text begin $860,000new text end for 2016 and deleted text begin $8,001,000deleted text end new text begin $8,018,000new text end for 2017.

C. SPECIAL PROGRAMS

Sec. 10.

Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision 3, is amended to read:

Subd. 3.

Travel for home-based services.

For aid for teacher travel for home-based services under Minnesota Statutes, section 125A.75, subdivision 1:

$ deleted text begin 361,000 deleted text end
new text begin 416,000 new text end
..... 2016
$ deleted text begin 371,000 deleted text end
new text begin 435,000 new text end
..... 2017

The 2016 appropriation includes $35,000 for 2015 and deleted text begin $326,000deleted text end new text begin $381,000new text end for 2016.

The 2017 appropriation includes deleted text begin $36,000deleted text end new text begin $42,000new text end for 2016 and deleted text begin $335,000deleted text end new text begin $393,000new text end for 2017.

Sec. 11.

Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision 5, is amended to read:

Subd. 5.

Aid for children with disabilities.

For aid under Minnesota Statutes, section 125A.75, subdivision 3, for children with disabilities placed in residential facilities within the district boundaries for whom no district of residence can be determined:

$ deleted text begin 1,406,000 deleted text end
new text begin 1,307,000 new text end
..... 2016
$ deleted text begin 1,629,000 deleted text end
new text begin 1,516,000 new text end
..... 2017

If the appropriation for either year is insufficient, the appropriation for the other year is available.

D. FACILITIES AND TECHNOLOGY

Sec. 12.

Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 3, is amended to read:

Subd. 3.

Debt service equalization.

For debt service aid according to Minnesota Statutes, section 123B.53, subdivision 6:

$ 20,349,000 ..... 2016
$ deleted text begin 22,171,000 deleted text end
new text begin 22,926,000 new text end
..... 2017

The 2016 appropriation includes $2,295,000 for 2015 and $18,054,000 for 2016.

The 2017 appropriation includes $2,005,000 for 2016 and deleted text begin $20,166,000deleted text end new text begin $20,921,000new text end for 2017.

Sec. 13.

Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 6, is amended to read:

Subd. 6.

Deferred maintenance aid.

For deferred maintenance aid, according to Minnesota Statutes, section 123B.591, subdivision 4:

$ deleted text begin 3,520,000 deleted text end
new text begin 3,523,000 new text end
..... 2016
$ 345,000 ..... 2017

The 2016 appropriation includes $409,000 for 2015 and deleted text begin $3,111,000deleted text end new text begin $3,114,000new text end for 2016.

The 2017 appropriation includes $345,000 for 2016 and $0 for 2017.

Sec. 14.

Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 7, is amended to read:

Subd. 7.

Health and safety revenue.

For health and safety aid according to Minnesota Statutes, section 123B.57, subdivision 5:

$ deleted text begin 501,000 deleted text end
new text begin 588,000 new text end
..... 2016
$ deleted text begin 48,000 deleted text end
new text begin 57,000 new text end
..... 2017

The 2016 appropriation includes $66,000 for 2015 and deleted text begin $435,000deleted text end new text begin $522,000new text end for 2016.

The 2017 appropriation includes deleted text begin $48,000deleted text end new text begin $57,000new text end for 2016 and $0 for 2017.

E. NUTRITION

Sec. 15.

Laws 2015, First Special Session chapter 3, article 7, section 7, subdivision 4, is amended to read:

Subd. 4.

Kindergarten milk.

For kindergarten milk aid under Minnesota Statutes, section 124D.118:

$ deleted text begin 942,000 deleted text end
new text begin 788,000 new text end
..... 2016
$ deleted text begin 942,000 deleted text end
new text begin 788,000 new text end
..... 2017

F. EARLY CHILDHOOD EDUCATION, SELF-SUFFICIENCY, AND LIFELONG LEARNING

Sec. 16.

Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 5, is amended to read:

Subd. 5.

Early childhood family education aid.

For early childhood family education aid under Minnesota Statutes, section 124D.135:

$ deleted text begin 28,444,000 deleted text end
new text begin 27,948,000 new text end
..... 2016
$ deleted text begin 29,939,000 deleted text end
new text begin 29,336,000 new text end
..... 2017

The 2016 appropriation includes $2,713,000 for 2015 and deleted text begin $25,731,000deleted text end new text begin $25,235,000new text end for 2016.

The 2017 appropriation includes deleted text begin $2,858,000deleted text end new text begin $2,803,000new text end for 2016 and deleted text begin $27,081,000deleted text end new text begin $26,533,000new text end for 2017.

Sec. 17.

Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 6, is amended to read:

Subd. 6.

Developmental screening aid.

For developmental screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

$ deleted text begin 3,363,000 deleted text end
new text begin 3,477,000 new text end
..... 2016
$ deleted text begin 3,369,000 deleted text end
new text begin 3,488,000 new text end
..... 2017

The 2016 appropriation includes $338,000 for 2015 and deleted text begin $3,025,000deleted text end new text begin $3,139,000new text end for 2016.

The 2017 appropriation includes deleted text begin $336,000deleted text end new text begin $348,000new text end for 2016 and deleted text begin $3,033,000deleted text end new text begin $3,140,000new text end for 2017.

Sec. 18.

Laws 2015, First Special Session chapter 3, article 10, section 3, subdivision 2, is amended to read:

Subd. 2.

Community education aid.

For community education aid under Minnesota Statutes, section 124D.20:

$ deleted text begin 788,000 deleted text end
new text begin 790,000 new text end
..... 2016
$ deleted text begin 554,000 deleted text end
new text begin 553,000 new text end
..... 2017

The 2016 appropriation includes $107,000 for 2015 and deleted text begin $681,000deleted text end new text begin $683,000new text end for 2016.

The 2017 appropriation includes $75,000 for 2016 and deleted text begin $479,000deleted text end new text begin $478,000new text end for 2017.

Sec. 19.

Laws 2015, First Special Session chapter 3, article 11, section 3, subdivision 2, is amended to read:

Subd. 2.

Adult basic education aid.

For adult basic education aid under Minnesota Statutes, section 124D.531:

$ deleted text begin 49,118,000 deleted text end
new text begin 48,231,000 new text end
..... 2016
$ deleted text begin 50,592,000 deleted text end
new text begin 49,683,000 new text end
..... 2017

The 2016 appropriation includes $4,782,000 for 2015 and deleted text begin $44,336,000deleted text end new text begin $43,449,000new text end for 2016.

The 2017 appropriation includes deleted text begin $4,926,000deleted text end new text begin $4,827,000new text end for 2016 and deleted text begin $45,666,000deleted text end new text begin $44,856,000new text end for 2017.

Presented to the governor May 24, 2016

Signed by the governor June 1, 2016, 11:04 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes